Press play on these moves to reset your warehousing operations. From automation insights to reverse logistics strategies, this advice-packed issue of Inbound Logistics reveals the processes and practices that ensure velocity and value. Covering autonomous tech innovations and lessons from AI missteps, this edition can help you fast-forward to supply chain efficiency.
TMS MUST-HAVES
PALLETS: STACKED FOR SUCCESS
RESET THE WAREHOUSE THE UPDATES YOU NEED NOW
HOW TO AVOID AI PITFALLS PLUS
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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
2400% The increase in international shipping reroutes recorded across 23.3 million shipments in 2025. Tariff changes, customs crackdowns, carrier constraints, and postal disruptions hit global shipping all at once. So far, those headwinds have not let up. –ePost Global
General Motors will add a sixth production day at its Flint Assembly plant in June. The facility currently runs three shifts five days a week, producing roughly 1,100 Chevrolet Silverado and GMC Sierra heavy- duty trucks daily. GM sold about 320,000 of those vehicles in 2025 and said rising fuel prices haven’t changed those numbers. It seems demand for heavy-duty pickups may be immune to sticker shock at the pump.
JUST PUT IT ON THE BOAT After years of watching longshoremen haul individual cargo on and off ships, North Carolina trucker Malcom McLean decided there was a better way: put the trailer on the boat. On April 26, 1956, a retrofitted WWII tanker left Port Newark carrying 58 steel containers bound for Houston. McLean then gave his patents away for free, allowing the entire world to standardize around the same box. Two-day delivery got its foundation, while the longshoremen who built their livelihoods on the old way lost theirs.
FUEL PROOF
ON TRACK
Red Bull athlete Dario Costa recently landed a plane on a shipping container moving at 120 km/h along a railway in Türkiye. Then, he took off again. Months of preparation with Rimac Automobili went into the feat, including a custom Kevlar seat built from 3D body scans. In the final seconds before touchdown, the container disappeared behind the aircraft’s nose. Costa stuck the landing.
Nissan teamed up with Dutch solar specialist Lightyear to embed photovoltaic cells across the hood, roof, and tailgate of the electric Ariya. The system can generate up to 4 kilowatt-hours of energy per day in high-sunlight conditions, adding up to 14 miles of range. For a commuter driving roughly 3,700 miles a year, those numbers could reduce annual charging visits by almost two-thirds. The system is part of Nissan’s mission to achieve carbon neutrality by 2050. RUNNING ON SUNSHINE
Apple reports that 30% of materials across its 2025 product lineup came from recycled sources, including the cobalt in its batteries and the rare earth elements in magnets. The company also cut plastic from product shipments entirely, and introduced a new automated sorting system to recover materials from end-of-life devices more efficiently. Apple is targeting full carbon neutrality by 2030. CORE RECYCLED
AIR TAXI
Joby Aviation flew its electric air taxi between JFK Airport and Manhattan this year, operating through some of the most complex airspace in the world. The aircraft touched down at the Downtown Skyport and the East 34th Street and West 30th Street heliports before returning to JFK, running point-to-point routes across the city’s existing heliport infrastructure. The Port Authority is already seeking partners to build a permanent vertiport at LaGuardia Airport.
May 2026 • Inbound Logistics 1
CONTENTS MAY 2026 | VOL. 46 | NO. 5
FEATURES
32 BEYOND THE BUILD:
UPDATING THE NEXT GEN WAREHOUSE To reset operations effectively amidst ongoing labor constraints and market uncertainty, warehouse leaders are implementing technology and enhancing processes to develop operations that are streamlined, flexible, and intelligent.
CONTENT PARTNERS 38 TMS SOLUTIONS:
NEW CAPABILITIES, RICH POSSIBILITIES Shippers operating without a transportation management system are leaving real money on the table. Today’s integrated TMS solutions are the map and the key, opening a treasure chest of financial governance, real-time visibility, and the intelligence needed to run smart.
CONTENT PARTNERS 58 PALLETS, ELEVATED
From supporting automation and circularity to increasing supply chain visibility, pallet solutions lift their profile.
2 Inbound Logistics • May 2026
INFOCUS 1 INFO SNACKS 12 NOTED 14 TAKEAWAYS
66 PRODUCT SPOTLIGHT: AI-POWERED ROBOTICS 68 IN BRIEF 72 LAST MILE Autonomous tech commands attention
66
6
GOOD QUESTION What are major pitfalls to using artificial intelligence in supply chains?
72
INSIGHT 4 CHECKING IN AI and TMS integration 6 GOOD QUESTION What are major pitfalls to using artificial intelligence in supply chains? 8 10 TIPS Managing supply chain risk 28 IT MATTERS Why supply chain AI fails 30 RISKS & REWARDS Has vendor vetting become security theater?
INPRACTICE 10 READER PROFILE BUILDING A HEALTHCARE SUPPLY CHAIN FOR THE FUTURE As senior vice
CONTENT PARTNERS 18 Who Pays the Freight? Why This Idiom Matters O ered by KDL Logistics 20 The Rising Cost of Fuel: Why Intermodal Transportation Just Makes “Cents” O ered by Hub Group 22 How to Manage Logistics Effectively During Data Center Development & Construction O ered by Phoenix Logistics 24 The Hidden Costs of Inef cient Warehousing O ered by Gebrüder Weiss 26 Orchestrating Inbound Freight: How Proven Dedicated Processes Keep Yards Flowing O ered by Keller Dedicated Services
president of supply, North America, Philip Hampden Smith is leading Reckitt’s
1
strategic transformation to build a resilient healthcare supply chain capable of handling shifting cold and flu season volatility.
INFO 70 RESOURCE CENTER
Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas, a Xometry company, 6116 Executive Blvd, Suite 800, North Bethesda, MD 20852. Periodicals postage paid at North Bethesda, MD, and additional mailing oces. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. Postmaster send address changes to: Inbound Logistics, P.O. Box 1167, Lowell, MA 01853-9900
May 2026 • Inbound Logistics 3
CHECKINGIN
Vol. 46, No. 5
May 2026
THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
AI and TMS Integration
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
F or decades, the core transportation management system (TMS) served as the reliable engine of enterprise logistics. Today, an exciting age of enhancement is upon us and just in time, too. In an era de ned by volatile supply chains and unpredictable disruptions, static planning is legacy. But guess what? You need not completely replace legacy TMS infrastructure. Instead, augment it with an intelligent layer: the strategic integration of
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
Ashley Prince ashley.prince@thomasnet.com
ASSOCIATE EDITOR
Keith Biondo, Publisher
Tom Gresham Karen M. Kroll Rich Osborne Gary Wollenhaupt
arti cial intelligence. Bridging the gap between legacy systems and modern TMS/AI is not an impossible technical hurdle; it is a doable modernization strategy. Let’s look at the process. First, the existing data is checked to ensure high data quality and compatibility across disparate systems. GIGO (garbage in/garbage out) on AI is not fun. Next, the AI is laid over the existing enterprise resource planning (ERP) system via APIs, which allows the legacy TMS to remain in charge while AI feeds it dynamic instructions. Then comes testing, testing, and more testing. A human is kept in the loop because we all have been told AI can make mistakes. Integrating AI and TMS is being done; you’ll nd some examples in our TMS article on page 38. Today’s AI-enhanced platforms process hundreds of variables concurrently—from real-time traf c conditions and severe weather to driver compliance, emissions thresholds, and dynamic cost uctuations. Instead of relying on pre-set, pre-planned routes, operations can now achieve continuous re-optimization as real-world disruptions wreak havoc on your product ow. One case history we covered shows a global carrier integrating AI routing engines and successfully reducing driving distances by more than 100 million miles annually. Besides the obvious bene ts, it also resulted in saving millions of gallons of fuel and cutting corporate carbon footprints. Similarly, a leading third-party logistics provider deployed powered AI to ingest, validate, and process complex transport data, allowing them to handle 30% more volume with the same workforce size while drastically improving response speeds to their customers’ inquiries. Those bene ts are passed to you. Of course, if you are large enough to be running your own TMS, you too can get similar AI overlay results. Either way, the ef ciency of a TMS/AI is real. There’s nothing arti cial about that.
CONTRIBUTING EDITORS
Jeof Vita jvita@inboundlogistics.com
CREATIVE DIRECTOR
DESIGNER Arlene So
DIGITAL DESIGN MANAGER PUBLICATION MANAGER
Amy Palmisano apalmisano@inboundlogistics.com
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SALES STAFF PUBLISHER: Keith Biondo
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4 Inbound Logistics • May 2026
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GOODQUESTION Readers Weigh In
What Are Major Pitfalls to Using Arti cial Intelligence in Supply Chains?
TOO MUCH NOISE. In global, multi-tier supply chains,
Avoid the Overreliance Trap
critical supplier information is often unavailable or inconsistent, leading to misleading outputs or excessive “noise” from irrelevant risk flags. Focus on strengthening data foundations, embedding human-in-the-loop validation, and prioritizing practical integration and usability across internal teams and supplier networks. –Marissa Licursi Director, Grant Thornton Stax DATA DISTRUST. If you don’t own and trust your data, AI just scales bad inputs into bad decisions—no matter how polished the dashboard looks. Stakeholders need strong data ownership, governance, and validation before layering on AI. –Carson Joyner Digital Strategy Lead, Gnosis Freight ACCOUNTABILITY DRIFT. When something goes wrong, blaming “what the AI said” doesn’t resolve disruptions. AI works best as an assistive tool—not an authority—when its recommendations are validated, actions are supervised, and humans remain accountable for outcomes. –Doug DeLuca Product Marketing Manager, SAP Business Network AMBIGUITY. Applying AI to processes that aren’t well defined or repeatable introduces ambiguity and hallucinations. Another risk is hype outpacing reality, creating confusion about what AI can do. Leaders should define the type of AI being used and ensure data is curated and structured. –Jack McCrum Director, Optimization and Analytics, Reveel
Overreliance on AI is a big risk. Investing in automation without fixing underlying processes creates new failure points. Chains break down when AI ignores real-world conditions and frontline decisions. The goal isn’t to automate everything, it’s to enhance how decisions are made. Companies getting this right modernize workflows first, then embed AI to improve service, transparency, and trust. –Zach Jecklin Chief Information Ocer, Echo Global Logistics Relying too much on AI can become perilous because every decision directly aects sourcing, pricing, and tax outcomes. Without validation, errors can quickly scale into material, financial, and compliance issues. As tax authorities raise expectations around auditability, transparency and traceability are mandatory to ensure every AI-powered decision can be explained and defended. –Chris Hall Senior Tax Ocer, Global Tax & Compliance, Vertex Inc.
UNCLEAR OWNERSHIP. Many AI pilots succeed locally but stall during scale up. The barrier is rarely the technology. More often, it’s unclear ownership, undefined decision authority, or processes that were not designed to absorb AI-generated outputs. Automation and AI will deliver sustained value when they are scaled enterprise- wide and aligned to execution roles, decision rights, and performance accountability. –Matt Derganc Senior Director, SSA & Co. OVERESTIMATION. A common pitfall is assuming AI understands how logistics really works. Software can optimize routes and forecasts, but it struggles with real-world
issues like customs rules, packaging compliance, or unexpected inspections. Use AI as a support tool while experienced operators keep control of final decisions. –George Wicks-Farr Head of Operations, Pallet2Ship APPLICABILITY. Its use in inventory management with Customs remains limited. Trust is a key concern—stakeholders can’t yet rely on IT to fully run FTZ operations or interface with U.S. CBP systems like ACE. Today, AI is best suited for administrative tasks. As the technology evolves, stakeholders should prioritize validation, oversight, and phased integration. –Jerey Tafel President, National Association of Foreign-Trade Zones (NAFTZ)
6 Inbound Logistics • May 2026
GOODQUESTION
RUSHED DEPLOYMENT and incomplete data. Shippers must understand where AI data comes from and whether it reflects today’s real-world operating conditions. AI won’t solve capacity or service challenges, but with strong data governance, it can improve predictions and real-time insight. –Mika Majapuro VP, Product Management, TransmetriQ NO COMPETITIVE EDGE. Anyone can add generic AI tools to their tech stack. Dierentiate by leveraging unique data, refining AI for specific needs, and aligning it with strategic goals from the ground up. Oer a solution that no one else has. –Kevin McMaster SVP, Customer Success & Operations, Flock Freight DATA GAPS. Assuming AI can compensate for gaps in operational data is one pitfall. Many supply chains still depend on periodic scans or checkpoint tracking, leaving gaps in visibility. If AI is fed fragmented signals, it can produce misleading outputs at scale. First, improve how data is captured. –Simon Ford Founder & CEO, Blecon MISSING INPUTS. Algorithms may not fully account for temperature, chain-of-custody, or compliance, and AI decisions can be opaque. Overreliance on historical data may miss sudden spikes in urgent shipments. Stakeholders should use AI to support, validate recommendations, train sta, and maintain oversight for high-priority or sensitive shipments. –Lorena Camargo President, Customized Logistics & Delivery Association (CLDA) AUTOPILOT MODE. If AI makes a mistake based on bad data, it can snowball before anyone notices. Stakeholders must keep humans in the loop to vet big decisions and ensure the “math” aligns with real- world common sense. –Bradley Barry Director & Partner, Supply Chain Services, St. Onge Company
Protect and Validate Your Data
Adoption is outpacing management. Two risks stand out. First, security: Sensitive data is moving across more systems, often without proper oversight. Start by auditing access and reviewing it regularly. Second, signal integrity: AI outputs depend on data quality and degrade over time. Monitor inputs and validate models. –Scott Stonys Head of Sales & Customer Success, Spotter AI AI in supply chains is creating new routes for cascading breaches. Poorly governed tools risk leaking data or linking systems in unintended ways; firms need tighter supplier oversight, clearer permissions, and human sign-o for critical automated actions. –Melissa Carmichael Head of U.S. Cyber, Beazley
LACK OF CUSTOMER SERVICE. Freight forwarders shouldn’t assume that deploying AI tools can replace the value of customer service excellence. An experienced operator can read a customer’s urgency, stress, and expectations in a way no algorithm can. The real advantage lies in combining human insight with AI for route optimization, shipment visibility, and pricing options. –Sean Yanok VP Regional Development, Gebrüder Weiss FRAGILITY. Optimizing just for cost strips out buers, creating fragility. Algorithms that human operators don’t understand lead to errors without accountability. Human intuition gets weaker over time like an unused muscle. Solutions: Train AI to value redundancy, not just eciency. Demand tools and workflows where AI oers recommendations and a human makes the final call.
map where humans need the most lift, pilot with clear guardrails, and measure outcomes for all parties, not just speed. –Carly Gunby VP Revenue, Transfix WRONG ANSWERS. AI amplifies everything—including inconsistent, outdated, or duplicated information from trading partners. The result: confident wrong answers at machine speed. Stakeholders should automate data validation at the point of ingestion, before feeding AI systems. Clean, governed data flows are the foundation for any AI initiative. –Michael Bevilacqua VP AI Product Management, Adeptia
–Nick Rakovsky CEO, DataDocks
Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question
CHANGE MANAGEMENT WHIPLASH and job security fears, plus AI agents that negotiate without real transportation context, eroding trust. Fix it by leading with strategy:
May 2026 • Inbound Logistics 7
10 TIPS 1 OPTIMIZE YOUR ROUTE TO RETAIL 2 PRIORITIZE OTIF PERFORMANCE For brands selling into today’s major retailers, On-Time, In-Full (OTIF) performance is not just a supply chain metric; it is a growth strategy. OTIF directly impacts shelf availability, retailer trust, and chargebacks. In an environment defined by tightening delivery windows
These strategies help CPG brands minimize disruption, protect in-stocks and maintain compliance with increasingly complex retail requirements so they can navigate uncertainty with confidence. Managing Supply Chain Risk
can reduce waste across both transportation and warehouse operations. 8 LEVERAGE VALUE-ADDED SERVICES Value-added services—
Fragmented LTL networks create inconsistencies and risk. Retail consolidation streamlines shipments into full truckloads, reducing complexity, improving transit times, and enhancing overall performance.
including packaging, labeling, barcoding,
4 STRENGTHEN COMPLIANCE Retailer requirements continue to evolve, and non- compliance can quickly erode margins through chargebacks and penalties. Establishing strong processes to meet retailer- specific delivery standards ensures smoother execution and protects profitability. 5 CHOOSE THE RIGHT INVENTORY STRATEGY Without the right inventory model, suppliers face excess costs and inefficiencies. Strategically located consolidation warehouses aligned with retailer distribution centers create a more efficient route to retail. The result is a simplified, scalable inventory strategy that drives consistent performance and growth.
6 ENHANCE CONTROL WITH ASSET OWNERSHIP An asset-based third-party logistics (3PL) provider that owns its fleet, operates its warehouses, and develops its own analytics technologies will enable suppliers to pivot faster and drive better decision- making. Leading supply chain partners also enhance control through integrated systems and real-time data visibility. 7 ACHIEVE SUSTAINABILITY As CPG suppliers face increasing pressure to reduce their environmental footprints, 3PLs should serve as a catalyst. The right partner can reduce a supplier’s carbon footprint while maintaining high service levels. Operational discipline also plays a role. By using data to identify inefficiencies, suppliers
kitting, and point-of-sale display assembly—enable suppliers to meet retailer requirements more efficiently. By executing these services in the same facility as inventory, suppliers eliminate unnecessary handoffs and minimize delays. 9 HARNESS MIDDLE-MILE EXPERTISE Optimizing the middle mile drives efficiency and reduces costs. By strengthening this critical link, suppliers can bridge the gap between production and retail more effectively. Consolidating shipments and leveraging real-time visibility helps reduce empty miles and drive more consistent on-time performance.
and increasing penalties, precision has become a competitive differentiator for CPG suppliers delivering into retail. 3 USE PREDICTIVE ANALYTICS TO FORECAST Limited visibility creates risk. By leveraging technology and AI-enabled analytics, CPG suppliers can stay ahead of demand shifts, safeguard retailer relationships, and maintain consistent delivery performance. Suppliers that invest in predictive intelligence will turn disruption into a competitive advantage.
10 FIND A STRATEGIC PARTNER, NOT JUST A PROVIDER
A single-source logistics provider functions as an extension of your team, bringing expertise and operational support. The right 3PL ensures freight is compliant, protecting reputations and eliminating chargebacks.
SOURCE: KEVIN WILLIAMSON, CHIEF EXECUTIVE OFFICER, RJW LOGISTICS GROUP
8 Inbound Logistics • May 2026
READERPROFILE Building a Healthcare Supply Chain For the Future as told to Karen Kroll
PHILIP HAMPDEN SMITH is senior vice president of supply, North America, at Reckitt, the company behind multiple hygiene and health brands, including Mucinex, Lysol, Finish, Biofreeze, Airborne, Durex, K-Y, and Neuriva. RESPONSIBILITIES: Leading the end-to-end manufacturing and go-to- market strategy, including oversight of manufacturing facilities and distribution centers across North America. EXPERIENCE: Senior vice president, global health supply; end-to- end supply director-ASEAN health, hygiene and nutrition; and other positions with Reckitt. Large-pack operations manager, focused improvement manager, and canning operations team leader, all with Molson Coors Brewing UK. PTO process engineer, Merck & Co. EDUCATION: First-class Master of Engineering (MEng) degree, chemical and process engineering, Newcastle University.
W ithin a lot of supply chains, everybody’s busy working on the immediate priorities. They’re not taking a collective look forward at what’s coming and getting prepared for the future. In contrast, Reckitt is in the midst of a transformation. With an eye on the future, we’re building a more resilient supply chain. Across our global health portfolio, we offer a wide range of over-the-counter medicines, as well as vitamins and supplements. We see that the dynamics of cold and flu season have shifted. Flu, COVID, and RSV now peak earlier, last longer, and are emerging off-season. The volatility has required us to adjust. We completed a study that laid down the blueprint we’re following. It drives our strategic supply agenda, particularly
in the health division. It’s something I’m extremely proud of. Our work was the catalyst for the $200+ million investment in a new facility in Wilson, North Carolina. We had very much been a supply chain in the traditional sense. We had strong global operations and centralized a lot of our capabilities in certain facilities. MEETING FUTURE NEEDS In doing this study, we realized that as challenges, such as geopolitical tensions, continue to surface, traditional supply chains will not meet the needs of the future. In North America, we understood that regionalizing our supply chains and providing access to our products more quickly was a strategic imperative. The Wilson facility is a direct result of that insight.
Completing this study required dedicated resources. Team members stepped back from their day-to- day responsibilities to pressure-test assumptions, explore future scenarios, and model the long-term needs of the business. Then, we overlayed projections against demand forecasts. It’s like playing a strategic chess game. You try to piece together various factors to ensure that you build a strategy with the future in mind. It requires considering capital investments, potential expansions, deeper partnerships, and insourcing opportunities. Now that our focus and vision are clear, we are in the execution phase. We are setting ourselves up for the future, so we’re ready to sustainably outperform.
10 Inbound Logistics • May 2026
READERPROFILE
I also focus on recruitment. A company is only as good as its supply chain, and the supply chain is only as good as the talent behind it. Competition for talent is intense, and ensuring we have the right people is essential to delivering on our strategy. STARTING OUT My father was in the oil and gas industry. He was my inspiration—hardworking, dedicated, and technically outstanding. I tried to model that, which drove me toward engineering. As a child, I was into sports.That made me competitive, but I also loved social connection and teamwork. Helping people resonates with me, so I pivoted toward the healthcare space. It’s purpose-driven and about making people feel better. What’s great about Reckitt is that we make products that people trust. And it’s a kick to see your products on TV or in the store.
Philip Hampden Smith Answers the Big Questions 1 What activities make you better at supply chain management? I get to the gym by 5:30 every morning. You can do something like a Kaizen Blitz event that’s
a series of silos. True resilience and eciency comes from visibility and collaboration across a network. If you operate with silos, you can make some progress, but it’s not built on a strong foundation. 3 What gets you out of bed in the morning? Being around people and tackling problems together. Supply chain is a contact sport. If you’re not into teamwork, if you’re not getting down on the ground, staying close to your shop floor, and really understanding the challenges and then helping to solve problems, I don’t think supply chain management is for you.
intense, focused, and short term. But consistent performance will beat short-term intensity. That’s very much what we find in supply chain. You also learn that progress requires patience, in the gym or in supply chain management. 2 What leadership or supply chain lesson resonates with you? Particularly in my recent roles, I’ve found that you need to manage the supply chain as a network and not
If not, they should be reading this.
Spread the good news by getting your vendors, partners, and team members reading Inbound Logistics . Point them to inboundlogistics.com/subscribe
May 2026 • Inbound Logistics 11
ICC =inventory carrying costs C =capital T =taxes I =insurance W =warehouse costs X =shrinkage S =scrap O =obsolescence costs R =recovery
NOTED [ IN FOCUS ]
The Supply Chain in Brief
> GOOD WORKS
> UP THE CHAIN
• Averitt Charities donated $1.4 million to St. Jude Children’s
Railinc Corp. promoted Joan Smemoe to president after 20 years with the company. She most recently served as chief information officer. President and CEO Allen West will retain the CEO role through his retirement in July 2026, after which Smemoe will assume full leadership. Marsh named Janelle Griffith as global logistics practice leader for Marsh Risk, a newly created role in which she will lead the firm’s global logistics strategy. Griffith has led Marsh Risk’s U.S. and Canada Logistics Practice since joining the firm in 2021.
Research Hospital, marking its seventh consecutive year of giving to the organization. Close to 97% of Averitt associates participate in the Averitt Cares for Kids giving program through weekly $1 payroll deductions.
• DHL Global Forwarding and DHL Express
coordinated Honduras’ first international big cat rescue. Five tigers and three lions were moved to accredited U.S. sanctuaries. A dedicated DHL Express freighter flew the animals directly to Miami, and four veterinarians were with the cats throughout the flight.
CMC named Davey Miller as chief operating officer after 15 years with the
company. CMC also promoted Michael Wojnowski, who joined the company in 2012, to senior vice president of the South Region.
> GREEN SEEDS
The Maritime and Port Authority of Singapore, Port of Long Beach, and Port of Los Angeles renewed their Green and Digital Shipping Corridor memorandum of understanding for another three years. The renewal commits the ports to continued work on low-emission fuels, port-to-port data connectivity, and decarbonization of the trans-Pacific shipping route. Gebrüder Weiss launched the fifth annual GWcycles campaign in April 2026, aiming to collectively cycle one million kilometers (621,371 miles) to fund the removal of up to 10 tons of plastic waste from rivers and coastal regions through its partnership with CleanHub. Pacific International Lines and PSA International, supported by DNV, launched Singapore’s first joint land-sea green shipping service for cargo transhipped through the Port of Singapore, giving shippers a verifiable pathway to reduce Scope 3 emissions across multiple transportation modes. Trials were scheduled to begin in May 2026.
> RECOGNITION
• Bettaway Beverage Distributors was named a 2025 Carrier of the Year by Arrive Logistics for the third consecutive year. The annual program evaluates candidates on relationship-building, proactive communication, scorecard metrics, and service excellence.
• Jungheinrich received three Red Dot Design Awards for its electric reach truck, autonomous mobile robot, and electric pedestrian pallet truck. The electric reach truck and mobile robot have previously received the iF Design Award.
12 Inbound Logistics • May 2026
NOTED
> M&A
> SEALED DEALS
CEVA Logistics completed its acquisition of Fagioli Group, a global project
• Trucker Path and Truckstop.com announced a partnership that brings Truckstop’s load feed directly into Trucker Path’s digital freight exchange, increasing load availability for users more than tenfold.
logistics specialist with expertise in heavy lifting, specialized hauling, and hoisting. The deal expands CEVA’s project logistics capabilities in Europe, Asia Pacific, and North America. DQS Solutions & Stang acquired Comprehensive Logistics, Inc., a 3PL provider operating across 17 states. Each company will continue operating under its established brand while the combined organization—which also includes McLaren Transport—expands the group’s capabilities across North America under parent company AXVOR. Wolter Inc. acquired CSI Materials Handling, an Illinois-based provider of pallet racking, engineered storage systems, and installation services founded in 1969. The acquisition expands Wolter’s presence in the Chicago market to meet growing demand for warehouse capacity. Descartes Systems Group acquired Idelic, a provider of AI-powered driver safety and performance management solutions. Idelic’s platform draws on a dataset of more than 40 billion miles of telemetry and 400,000+ accident records to help fleets proactively identify and reduce driver risk. Private equity firm STG acquired Carrier Logistics Inc. (CLI), a TMS provider with more than 50 years in the industry. STG plans to accelerate CLI’s product development by integrating agentic AI into its core platform. CMA CGM Group announced an agreement to acquire Fattal Group, a MENA-region distributor of consumer goods, pharmaceuticals, and cosmetics operating in eight countries. The deal is subject to regulatory approvals and expected to close in the third quarter of 2026.
• Agillence has entered into a long-term contract with Toyota Motor Europe to continue providing its Agillence Lean Logistics Optimizer (ALLO) software for inbound parts logistics network planning following a successful pilot. The software supports strategic network planning and scenario analysis aimed at improving ef ciency and advancing Toyota Motor Europe’s carbon neutrality goals. • Omnichannel ful llment provider Kase supported luxury home brand Boll & Branch during the 2025 peak season. The operation achieved 99.5% order accuracy, reduced short shipments and cancellations by 55%, and delivered 99.7% of packages on time for the brand’s holiday guarantee.
> MILESTONES
Verst Logistics is celebrating its 60th anniversary this year. Since its 1966 founding, the company has grown from a family-run operation in Northern Kentucky into a nationwide omnichannel fulfillment, warehousing, packaging, and transportation provider. Dayton Freight Lines recently celebrated 45 years in business, growing from six employees and a few rented trucks in 1981 to the country’s 13th largest LTL carrier. The company plans to break ground on two new service centers in Pennsylvania, add a second Indianapolis location, and open a new facility in South Dakota.
Diakon Logistics recently marked its 35th anniversary by opening a new flex warehouse in Virginia, expanding its last- mile flex delivery solutions to 15 states. Founded in 1991, the 3PL specializes in white glove last-mile delivery for big and bulky items, including furniture, appliances, and bedding.
May 2026 • Inbound Logistics 13
TAKEAWAYS Shaping the Future of the Global Supply Chain
A HUMANOID WALKS INTO A WAREHOUSE
Freight Snapshot: Over-the-Road Moves to Make From diversifying carrier partnerships to developing mini-bids, here’s what shippers can do to prepare for a tighter Q2 in 2026, according to Uber Freight: ■ Anticipate —and prepare for—further market tightening through June, driven by DOT week and the surge in summer produce volumes. Historically, spot rates have climbed 8% during this April-to-June window. ■ Conduct stress tests on routing guides to prepare for potential exits of smaller or marginal carriers. ■ Proactively diversify carrier partnerships on essential lanes to avoid reactive sourcing. ■ Regularly assess carrier compliance readiness as a standard component of performance evaluations. ■ Develop targeted mini-bids rather than counting on continued market stability. ■ Keep a close watch on fuel costs, decouple fuel from linehaul, and implement a fuel matrix wherever feasible. ■ Capitalize on the pricing lag between intermodal and truckload sectors by shifting appropriate lanes to intermodal transport. ■ Enhance trailer utilization and eliminate ineciencies by reducing empty miles wherever possible.
A humanoid robot checks for misplaced or improperly stacked items.
Accenture is piloting the use of humanoid robotics in warehouses, unveiling a program with SAP and telecommunications company Vodafone Procure & Connect. Presented in April 2026 at the Hannover Messe event, the pilot program was conducted at Vodafone Procure & Connect’s warehouse in Duisburg, Germany, where humanoid robots were deployed to operate alongside existing warehouse systems. Receiving inspection tasks through the SAP Extended Warehouse Management System, they autonomously carried out visual inspections across the facility. During the pilot, humanoid robots identi ed operational inef ciencies, safety risks, and optimization opportunities across warehouse processes. They detected misplaced or damaged products, assessed pallet stacking and weight distribution, highlighted unused storage space, and identi ed potential hazards such as obstacles in aisles or misaligned pallets. The robots reported their ndings and recommendations to the SAP system. SAP led the integration of the robots into the warehouse management system, while Accenture designed and deployed the robot intelligence and operational framework. The humanoid robots are powered by Accenture’s Robot Brain solution, enabling them to interact naturally with human operators through voice, gestures, and text. The robots are trained in digital twins of warehouse environments, built on Accenture’s Physical AI Orchestrator , which uses NVIDIA Omniverse libraries, the Mega NVIDIA Omniverse Blueprint, and the NVIDIA Metropolis libraries and Blueprint. This allows them to go beyond single repetitive functions and learn new skills through imitation and reinforcement learning. LONGTERM OUTLOOK: The initiative re ects a growing focus on applying advanced robotics and physical AI in real-world industrial environments, helping organizations move from experimentation to practical deployment at scale.
Source: Mazen Danaf, Senior Economist and Applied Scientist, Uber Freight
14 Inbound Logistics • May 2026
TAKEAWAYS
HOW TO TURN REVERSE LOGISTICS INTO A PROFIT DRIVER By COLIN CHAPMAN , Senior Vice President, Services, Flex
Top 12 Warehouse Challenges Warehouse managers report the following biggest pain points, according to a recent Kardex Remstar survey:
1. Inventory control 2. Space constraints 3. Pick accuracy 4. Inventory visibility
Reverse logistics remains a reactive function designed to process returns quickly and contain cost for many manufacturers and retailers. With margin pressure rising and product complexity continuing to increase, supply chain leaders should take these practical steps to elevate reverse logistics from an operational burden to a structured advantage:
5. Supply chain instability from delays, shifting taris, and lead time surprises 6. Managing demand spikes from peak seasons and viral products 7. Rising labor costs 8. Inventory replenishment 9. Labor shortages 10. Ergonomics and safety 11. Returns management 12. Global trade uncertainty, such as international disruptions ABOUT THE SURVEY: Materials handling provider Kardex Remstar collected data from more than 100 customers across North America, representing industries such as manufacturing, ecommerce, pharmaceuticals, and logistics. OVERHEARD
1. START WITH DESIGN FOR RECOVERABILITY. Review high-return product categories and assess whether minor design adjustments could improve serviceability. Products designed for modularity, standardized components, and ease of disassembly are easier to repair, refurbish, or harvest for parts. Simpli ed fasteners, clearer labeling, and component standardization can reduce processing time and increase resale or reuse potential. 2. IMPLEMENT STRUCTURED TRIAGE. Establish clear triage protocols that quickly categorize returned goods based on condition, resale potential, and component value. The objective is speed with precision: routing each unit to the optimal disposition path as early as possible. Standardized inspection work ows and prede ned decision trees reduce dwell time and preserve value. 3. SEGMENT RETURNS BY VALUE, NOT VOLUME. Focus on value density, instead of return volume metrics. For example, a low-volume, high-value component may justify refurbishment and reintegration into inventory. However, high-volume, low- margin goods may be better suited for bulk liquidation or recycling. Analyze historical return data to identify which categories consistently recover the highest percentage of original value, and prioritize operational resources around those streams. This ensures labor, space, and processing capacity align with nancial impact rather than volume. 4. ACTIVATE SECONDARY CHANNELS STRATEGICALLY. Beyond traditional liquidation, companies can leverage outlet channels, local pickup models, B2B resale platforms, and direct-to-consumer marketplaces. Evaluate which products are best suited for resale, which require refurbishment rst, and which are better monetized in bulk. Clear segmentation avoids margin erosion in primary channels while maximizing recovery in secondary ones. 5. CLOSE THE LOOP WITH FORWARD PLANNING. Reverse logistics generates actionable intelligence that extends well beyond the warehouse. For instance, return reasons can reveal product design gaps. Meanwhile, repair frequency may signal supplier variability, and regional return trends can expose forecasting or allocation imbalances. Organizations that feed reverse data back into design, sourcing, and inventory planning reduce future return rates and improve supply continuity. They establish cross-functional reviews where reverse metrics inform upstream decisions. These actions embed reverse logistics across the lifecycle, turning it from a cleanup function into a performance feedback engine and pro t driver.
“We need to bust the myth that if jet fuel goes up, airfreight prices (need to) go up. Fuel costs have gone up dramatically, but rates are starting to go down in
specific markets.” NIALL VAN DE WOUW, Airfreight Ocer, Xeneta
Some welcome news: While global air cargo spot rates surged 30% year-on-year in April 2026 to reach their highest level since October 2022, the worst may be over for shippers as capacity returns on routes most aected by the Middle East conflict, and market fundamentals start to regain control of airfreight pricing, according to Xeneta analysts.
May 2026 • Inbound Logistics 15
TAKEAWAYS
ENTER: TESLA SEMI FINALLY. WILL IT CHANGE THE LONG HAUL FREIGHT MATH?
At a moment when diesel’s long-standing cost advantage is under pressure, the Tesla Semi is entering production after years of delays. Tesla con rmed in its Q1 2026 shareholder update that the Semi electric truck has entered pilot production at a dedicated 1.7-million- square-foot facility next to Gigafactory Nevada. This manufacturing setup should help avoid some of the supply constraints that contributed to earlier delays and give Tesla tighter control over a critical part of its supply chain. The company has said the plant is designed for an annual capacity of up to 50,000 units. At the same time, rising diesel costs are
The Tesla Semi secured a 60-truck order from port drayage fleets in California in May 2026.
changing the total cost of ownership equation for long-haul freight. Tesla Semi holds about a 3% cost advantage over a comparable diesel truck in the current fuel environment, according to Bernstein analysts. Tesla estimates operating energy costs at roughly 15 to 25 cents per mile, compared with about 50 to 70 cents for diesel. For a Class 8 truck running 200,000 miles a year, that difference can add up to tens of thousands of dollars in annual savings.
Upfront costs, charging infrastructure, and service networks remain barriers to entry for eets considering electri cation.
These factors are expected to become less relevant as electric truck production scales, operating economics improve, and infrastructure is built out. In short, the case for electric trucks is growing by the day.
Helium Crunch: What Chipmakers Can Expect
That buer is reinforced by market conditions entering the year. Global helium supply exceeded demand in 2025, creating a surplus that encouraged storage. Those inventories are now helping absorb pressure, even as prices move higher. The Moody’s report also highlights several mitigation tools available to chipmakers, including partial recycling of helium in certain process steps, supplier prioritization during constrained supply periods, and incremental reductions in consumption through process optimization. These approaches were also used during prior gas shocks, including the 2022 neon shortage. Despite these techniques, a prolonged disruption in Qatar would likely keep the market tight because helium is so dicult to replace. As AI infrastructure spending accelerates, helium availability is gaining relevance. Hyperscalers are committing hundreds of billions to data center buildouts that depend on steady semiconductor output, and, by extension, on a small set of concentrated industrial gases like helium.
A helium supply shock linked to conflict in the Middle East is drawing renewed attention to a niche but critical input in semiconductor manufacturing, according to a recent Moody’s Ratings report. Helium is used in several stages of chip manufacturing, including for wafer cooling, as a carrier gas, and for leak detection. There is no scalable substitute, which makes the industry sensitive to supply interruptions. The report notes that Qatar accounts for roughly 30% of global high-purity helium output. Disruptions at the Ras Laan complex led Air Liquide’s Airgas unit to declare force majeure , raising the risk that contracted volumes could be delayed or reduced. Despite the risk, near-term disruption appears contained. Semiconductor manufacturers entered 2026 with several months of inventory in some regions, and large industrial gas suppliers maintain significant storage infrastructure. Companies including Air Liquide, Linde, and Air Products have invested in storage caverns designed specifically to smooth supply shocks.
16 Inbound Logistics • May 2026
TAKEAWAYS
RFID Rollout: Embedding Sensing In Supply Chains To phase out manual scanning, UPS is rolling out radio frequency identification (RFID) package sensing across its U.S. small package network, expanding shipment visibility from pickup through delivery. The technology is now in U.S. package delivery vehicles and delivery facilities, as well as on every package shipped through more than 5,500 The UPS Store locations. “By integrating RFID technology to automate its U.S. small package network, spanning billions of items, UPS is delivering an industry-first use case at scale,” says Julie Vargas, VP/GM, enterprise intelligent labels growth at Avery Dennison. UPS has invested more than $100 million to develop and implement the technology. The rollout marks a shift from scanning to sensing. Since the early 1990s, package tracking has relied on barcode scans at specific handoff points. With RFID embedded in package labels and installed in vehicles and loading bays, packages can be automatically sensed as they move through the network. In short, the rollout enables continuous, automated visibility. For shippers and enterprise
DRIVER SHORTAGE— OR MARKET RESET? The trucking industry’s age-old driver shortage conversation is shifting in 2026, as tighter enforcement and changing demographics reshape available capacity. The post-pandemic freight surge added an influx of both trucks and drivers to the system. Now, the question is less about absolute driver availability and more about how compliance and eligibility rules are affecting the usable driver pool. Regulatory scrutiny around CDL validity, non-domiciled licenses, and English-language proficiency requirements is removing drivers from active service. This can make the market feel tighter, even if total headcount looks more or less unchanged. At the same time, demographic pressures continue to build. The driver workforce is aging, and recruiting younger drivers into long-haul roles remains difficult. Restrictions on under-21 interstate driving and limits on non-domiciled CDL holders add further constraints in certain segments. Cross-border freight, in particular, is feeling the impact of shifting enforcement protocols. Some carriers report changes in driver participation on U.S.-Canada lanes as documentation and visa requirements face closer review. For carriers, this environment makes compliance management and documentation accuracy more important. Fleets are spending more time verifying credentials and ensuring drivers meet evolving standards. For shippers, the impact shows up as uneven capacity. While overall freight demand remains moderate, certain lanes, especially in the long-haul and cross-border spaces, are tighter than expected given broader market conditions. The broader shift suggests the industry is
supply chain leaders, this has the potential to improve data accuracy, reduce blind spots, and support more predictive, responsive logistics operations, particularly in high-volume environments, notes Vargas.
moving from a period defined by surplus capacity to one defined by qualified capacity. In 2026, the total number of drivers matters less than which drivers are able to participate in the system.
May 2026 • Inbound Logistics 17
KNOWLEDGE Base CONTENT PARTNERS
Who Pays the Freight? Why This Idiom Matters
The party responsible for freight controls the visibility, execution, and oversight of transportation decisions.
W hy is “who pays the freight” a common expression, and why does it matter who does? Because the party responsible for freight controls the visibility, execution, and oversight of transportation decisions. When that control is absent or poorly managed, small operational errors can result in undetected pro t leaks. Over time, across thousands of orders, they compound into substantial pro t erosion hidden within a single line item on the P&L.
At rst glance, this responsibility appears burdensome. In practice, it is a signi cant nancial lever. CONTROL CREATES PREDICTABILITY AND SAVINGS Organizations that “pay the freight” gain the ability to measure and manage transportation decisions; what gets measured gets managed. Not all companies manage freight the same way. Those that do often uncover opportunities that were previously hidden within transactions. Questions that frequently reveal margin opportunities: • Does my company or the counterparty have better carrier pricing? • Is the other party marking up freight or charging handling fees? • Would controlling more freight increase my total transportation volume and improve carrier pricing? • Does my company apply freight markups, and are they consistent with current costs? • Do outdated “free freight” sales policies exist that quietly erode margins? • If my company controls freight, do suf cient controls exist to prevent shipping or policy errors? When these questions are clearly measured and governed, freight decisions begin contributing to pro tability rather than simply adding operational work. THE HIDDEN COST OF THE “EASY BUTTON” Many companies believe they are avoiding costs by allowing the counterparty to control transportation. In reality, they
often still pay the freight expense, albeit indirectly. When a party does not control freight, it becomes dependent on the other party’s transportation methods, carrier selection, pricing agreements, shipping and handling markups, and operational business practices. This lack of visibility frequently introduces hidden costs that remain embedded within invoices or product pricing. Organizations that do not actively measure these dynamics often lose money without realizing where the loss originates. FREIGHT AS A MARGIN OPPORTUNITY organizations often search for complex solutions. Freight is commonly viewed as a burden, yet for those willing to manage that burden, it often becomes a meaningful source of savings and pro t improvement. Companies that actively control freight gain greater visibility into transit and costs. They hold more leverage in carrier pricing negotiations and can drive more predictable landed and delivered cost structures. The result is improved margin stability and fewer hidden surprises within nancial performance. When margins compress due to macroeconomic conditions,
WHEN SIMPLICITY COMES AT THE EXPENSE OF CONTROL Many companies instinctively prefer not to pay for the freight. Delegating transportation to the other party in a transaction appears simpler and removes an operational task. However, simplicity often comes at the cost of visibility, control, and margin. The paying company must apply resources and management to ensure: • Delivery expectations are met • Risk is considered and minimized • Shipping disadvantages are avoided • Order, shipment, and delivery variables are understood and controlled • Pro t leakage does not occur due to hidden transportation costs
–By Rob Hammel
About KDL Logistics. Keystone Dedicated Logistics (KDL) is a third-party logistics (3PL) company headquartered in Pittsburgh, Pennsylvania, simplifying managing logistics. KDL is a leader in freight transportation logistics management, providing one-stop integrated service solutions to domestic mid-market companies. www.kdlog.com
Owner/Managing Director KDL Logistics www.kdlog.com
18 Inbound Logistics • May 2026
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