AI IN SUPPLY CHAINS: GAME ON! HEALTHCARE SUPPLY CHAIN: CURING ACHES & PAINS
ORCHESTRATING SUPPLY CHAINS: 3PLS KEEP THE BEAT
PLUS
TOP 100 3PLS LAY DOWN THE RHYTHM DRUM ROLL PLEASE: TOP 10 3PL EXCELLENCE AWARDS 3PL PERSPECTIVES: THE BEAT GOES ON
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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
$184 BILLION What supply chain disruptions cost global businesses every year. This staggering number highlights the immense financial risk and urgency companies face in shoring up logistics resilience.
RETAILERS GET CRYPTO-CURIOUS Retailers including Walmart and Amazon are exploring the use of stablecoins—cryptocurrencies pegged to fiat
currencies like the U.S. dollar—that oer near-instant settlement, which is especially attractive to companies managing global logistics and high transaction volumes. Adoption could streamline cross-border payments, improve cash flow for suppliers, and reduce reliance on legacy payment systems that typically take days to clear. A pending bill in Congress, the Genius Act, could provide the regulatory clarity needed for stablecoin adoption to scale among major retailers and supply chain players. Even if retailers don’t issue their own digital currencies, joining a stablecoin consortium could give them a competitive edge in managing payments and inventory more eciently. Quick as a Brick LEGO collaborated
BORDERLINE GENIUS
Green Corridors, a Houston-based autonomous logistics company, received approval from the Trump Administration to construct a $10-billion, 165-mile elevated freight corridor between Laredo, Texas, and Monterrey, Mexico. The Intelligent Freight Transportation System (IFTS) will use autonomous, hybrid-
with all 10 Formula 1
teams at the 2025 Miami Grand Prix to build life- size, drivable
F1 cars out of more than 400,000 LEGO bricks each. The project took 22,000 hours and involved engineering electric drivetrains, working steering systems, and reinforced frames—mirroring real-world manufacturing and supply chain precision.
electric shuttles running on elevated viaducts to move cargo. The project aims to reduce border delays and is expected to be funded in part through user fees. The system will also enhance border security, cut emissions, and oer real-time tracking through a connected mobile app, according to Green Corridors.
Amazon Grips the Future Amazon’s new robot, Vulcan, brings a sense of touch to warehouse automation, allowing it to pick and stow items with a level of dexterity previously limited to humans. Designed to navigate crowded storage pods, Vulcan uses force
Electric Aircraft Makes Quiet History
On June 3, 2025, passengers at New York JFK Airport witnessed Beta Technologies’ ALIA CX300 all- electric aircraft taxi after a successful 45-minute flight from Long Island MacArthur Airport that cost just $7 in electricity—compared to $160 in fuel for a comparable helicopter. Designed for regional transport, the CX300 oers a quieter, lower-emission alternative to traditional aircraft, with a 386 NM range and up to 75% fewer carbon emissions. Beta Technologies is also developing the ALIA A250, a VTOL version aimed at replacing helicopters, with both models promising drastically reduced operating costs. These aircraft signal a shift toward more sustainable aviation logistics, particularly for cargo and short-haul passenger routes.
feedback and computer vision to handle items delicately and accurately. It can operate in hard-to-reach areas like high or low storage compartments, reducing the need for employees to use ladders and enhancing safety and ergonomics. Vulcan can handle about 75% of stored products at speeds comparable to human workers.
July 2025 • Inbound Logistics 1
CONTENTS FEATURES JULY 2025 | VOL. 45 | NO. 7 114
ARTIFICIAL INTELLIGENCE IN SUPPLY CHAINS: GAME ON! From decision support to reverse logistics, here’s how artificial intelligence can level up supply chain capabilities and systems. 120 9 BEST PRACTICES FOR GLOBAL LOGISTICS MANAGEMENT In a climate of uncertainty and disruption, companies that prioritize visibility, sophisticated tech, empowered teams, and trusted collaboration are building more resilient, responsive global supply chains. 126 A DOSE OF INNOVATION CURES HEALTHCARE SUPPLY CHAIN AILMENTS Pharma and healthcare supply chains evolve with intelligent systems and agile methods that ensure safety, speed, and stability under pressure. See how smart planning, cutting-edge tools, and future- ready systems are treating the sector’s aches and pains. CHAINS: GAME ON! reverse intelligence
LAYING DOWN THE RHYTHM
70 3PL PERSPECTIVES
98 READERS’ CHOICE: TOP 10 3PL EXCELLENCE AWARDS Your votes recognize the most innovative and eective 3PLs that consistently deliver exceptional service, drive eciency, and provide true value for clients. 106 WHO VOTED? A sampling of the thousands of companies that voted for their outsourced logistics partners. 108 3PLs SET THE BEAT In today’s high-stakes, high-speed global supply chain, third-party logistics providers are more than just behind-the- scenes players—they’re the drummers keeping time, driving rhythm, and keeping operations in sync. Discover how agile, tech-savvy 3PLs help shippers stay resilient, responsive, and right on beat.
MARKET RESEARCH REPORT Amidst policy shifts, geopolitical volatility, and rapid technological advancements, 3PLs are adapting to meet evolving client needs. This report uncovers how recent adjustments are reshaping 3PL services and operations, oering insights into their profitability and the shifting shipper landscape they support. 80 2025 TOP 100 3PLs Successful supply chains hit a high note when 3PLs lay down the rhythm. These Top 100 third-party logistics providers are the drummers of industry, setting the tempo for global commerce and ensuring every beat drops on time.
2 Inbound Logistics • July 2025
From distribution and fulfillment to transportation management, material handling, and supply chain technology, Kenco provides end-to-end solutions built for Operational Excellence and long-term value. For 75 years, we’ve focused on smart, scalable strategies—and lasting partnerships—to help our customers gain a competitive edge.
Discover what makes Kenco a Top 3PL. Visit KencoGroup.com Visit
See why Kenco stays at the top of the lineup.
CONTENTS 132 7 KEY REGULATORY CHANGES IMPACTING 154 SITE SELECTION BEST PRACTICES: LOCATION, LOCATION…LOGISTICS
CONTENT PARTNERS 32 Alaska Marine Lines Supports FEMA Hawaii Housing Project O ered by Lynden 34 The End of Cost-Plus: A Legacy Pricing Model in a High- Performance Supply Chain O ered by Capstone Logistics 36 Overcoming Geopolitical Uncertainty and Turning Challenges into Opportunities O ered by The Logistix Company 37 Adapting Your Supply Chain to Mitigate Risk and Volatility
GLOBAL TRANSPORTATION Seven critical regulatory updates— including de minimis rule changes, new international data requirements, and cyberattack reporting—will significantly impact shippers and demand proactive compliance strategies. 138 END-TO-END VISIBILITY: THE SEE-THROUGH SUPPLY CHAIN Supply chain leaders seek end-to-end visibility solutions to gain transparency from origin to final mile. The clarity that comes with this X-ray vision helps them detect issues early, respond quickly, and build a resilient, agile network. 144 VETERANS FIND A NEW FRONTLINE IN LOGISTICS Military veterans bring grit, leadership, and a mission-first mindset to the logistics sector, proving to be the secret weapon in solving today’s tough supply chain challenges. 148 WAREHOUSE ROBOTICS GAIN PICKING PROWESS Making advancements in dexterity and finesse, warehouse robots take on more supply chain applications.
It’s sometimes the overlooked factors— from labor pools to power grids—that define a truly ecient warehouse or distribution center site. Following these data-driven strategies can help you separate optimal site selection from costly mistakes. 160 SPECIALIZED TRANSPORTATION: LOGISTICS ON A MISSION Ingenious methods, precise planning, and customized solutions drive the movement of critical, oversized, and unique cargo worldwide. 167 SUMMER READING GUIDE Wherever your summer travels take you, bring along some fresh supply chain insights to stay up to date on the latest supply chain developments all season long.
O ered by Hub Group 38 Rail Shipping: How to Future-Proof and Streamline Your Operations O ered by RSI
39 Outrun the Bear ™ : Building a Smarter Response to Supply Chain Disruption O ered by NT Logistics 40 Supporting a Hotel Brand’s Global Expansion and Complex Logistics Needs
O ered by SEKO Logistics 41 Decommissioning and Recon guring an Aging Cryptocurrency Data Center O ered by Logistics Plus
42 120-Ton Advantage: Meeting Critical Deadlines for Heavy Haul Cross-Border Shipments O ered by Landstar 43 How Ascent Fast Boat Saved an Automotive Manufacturer Millions and Kept Production on Schedule O ered by Ascent Global Logistics
44 Prioritizing Technology Upgrades in a Multi-Client Warehouse Environment O ered by MD Logistics
45 Seeing Clearly: How CLI’s AI System Transformed Quality Control O ered by Comprehensive Logistics
4 Inbound Logistics • July 2025
CONTENTS
INSIGHT 8 CHECKING IN Pick a 3PL that evolves 12 10 TIPS Storm-proofing your shipments 14 GOOD QUESTION What is one supply chain “trade-o” that is actually not a trade-o? 46 LEAN SUPPLY CHAIN Lean meets green: How smart supply chains cut waste 48 PROCUREMENT Powering growth through insights 50 COLLABORATION Partnership fuels digital revolution 52 SUPPLY CHAIN VISIBILITY Real-time asset data: A game changer 54 TRANSPORTATION MANAGEMENT Six ways to make must-arrive-by dates work for you 56 WAREHOUSING How automation, data and demand are reshaping warehouses INFOCUS 1 INFO SNACKS 10 DIALOG 16 WHAT’S THE WORD? 22 NOTED 24 TAKEAWAYS 28 BEYOND THE BUZZ: TARIFFS 184 IN BRIEF 192 LAST MILE Car carriers bound for a new horizon
58 VIEWPOINT Can we jumpstart American shipbuilding? 60 IT MATTERS Changing your TMS isn’t as painful as you think 62 3PL LINE Why brands are breaking up with their multi-3PL model 64 GREEN LANDSCAPE Waste not, win more: Smart sustainability drives retail growth 66 ARTIFICIAL INTELLIGENCE Building a future-proof supply chain INFO 182 SUPPLY CHAIN INSIGHTS 186 CALENDAR 188 RESOURCE CENTER
192
14
GOOD QUESTION What is one supply chain “trade-o” that is not actually a trade-o?
INPRACTICE 18 LEADERSHIP Wired to Reshape Manufacturing
175 CASEBOOK Sunset Opens New Windows for VEKA Window and door systems company VEKA overcame significant logistical challenges by partnering with a 3PL provider that prioritized personalized service and strong carrier relationships over automated processes. 179 TOOLKIT Radeberger Brews a Smarter Supply Chain Germany’s largest brewery group, Radeberger, tamed its exceptionally complex supply chain by implementing a
Legacy, grit, and humility power Electro Soft CEO Karla Trotman’s approach to business, family, and the future of American manufacturing. 20 READER PROFILE
Diego Fonseca Strikes the Right Chord From aspiring musician to industry visionary, Diego Fonseca is transforming operations and driving
digital twin from Siemens Digital Logistics to provide an integrated overview and high- quality data and enhance eciency across its extensive operations.
growth at Southern Glazer’s. 172 CASE STUDY Dodging Taris, Delivering Savings Faced with looming taris and rising risk, Echo Water overhauled its supply chain, and saved nearly $10 million in one year. Here’s a firsthand account.
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
6 Inbound Logistics • July 2025
GAIN THE BIG PICTURE GAIN GROUND The larger your supply chain grows, the more complex it becomes. As a supply chain management partner, Penske Logistics oversees the movement of your freight at every step, allowing you to improve performance and focus on the bigger picture for your business. gopenske.com/gain-ground
CHECKINGIN
Vol. 45, No. 7 July 2025 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
Pick a 3PL That Evolves
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
G rowth in 3PL solutions is in uenced by your demands. Data shared by more than 200 3PLs and thousands of their customers for this year’s 3PL Perspectives survey ( see page 70 ) offers the following key takeaways that can guide demand-driven enterprises as they seek to align with new partners.
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
3PLs go hybrid. The percentage of pure-play asset- based 3PLs has steadily decreased between 2024 and 2025. Further making this point, the number of 3PLs identifying as both asset- and non-asset-based jumped in 2025, indicating that hybrid 3PL models are required to answer your needs. Do wholesalers need 3PLs anymore? This year’s survey shows a signi cant decline in the percentage of 3PLs that serve wholesale businesses, dropping from 83% in 2024 to 67% in 2025. Is this the impact of the Walmarts and Amazons of the world connecting suppliers directly with ecommerce retailers who no longer need 3PL solutions? 3PLs fend o Amazon. While the percentage of 3PLs serving the ecommerce market shows a slight decline, it’s less pronounced than in the wholesale market sector. Overall, ecommerce activity grew to an estimated $1.34 trillion domestically and $6 trillion+ globally, yet the 3PLs responding to the Inbound Logistics 3PL Perspectives survey show only a small decrease in share. Your best pick for a 3PL provider is the one that invests and adapts to compete with the vaunted Amazon and Walmart. Ask your 3PL about internal e ciency. Survey respondents peg the importance of enhanced operational ef ciency. That means money saved is money to invest with you. And speaking of investment... Almost all respondents point to the increasing role of technology as a de ning factor in pro tability growth, despite at sales in many cases. Look for high levels of tech investments as you consider your supply chain signi cant other. When choosing a partner, consider these survey takeaways: • Does your prospective logistics partner embrace and optimize hybrid operational models? If so, they’ll stay healthy. • Does the 3PL intensify tech spend—AI, automation, and visibility? Spending once and sharing with many is the best route for adapting expensive tech regimes. • Does the 3PL go head-to-head with the ecommerce giants offering Amazonian-like solutions? Our research identi es the key traits of 3PLs that are actively investing to align with your changing requirements. If your potential logistics partner matches this description, pick that one.
June Allan Corrigan Tom Gresham Karen M. Kroll Gary Wollenhaupt
CONTRIBUTING EDITORS
Keith Biondo, Publisher
Jeof Vita jvita@inboundlogistics.com
CREATIVE DIRECTOR
Analia del Giorgio Arlene So
DESIGNERS
DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR
Amy Palmisano apalmisano@inboundlogistics.com
Sonia Casiano sonia@inboundlogistics.com
Carolyn Smolin
SALES STAFF PUBLISHER: Keith Biondo
212-629-1560 FAX: 212-629-1565 publisher@inboundlogistics.com ADVERTISING SALES sales@inboundlogistics.com Joseph Biondo 516-578-8924 jbiondo@inboundlogistics.com Rachael Sprinz 212-629-1562 FAX: 212-629-1565 rachael@inboundlogistics.com Guillermo Almazo 305-833-5372 mexico@inboundlogistics.com FREE SUBSCRIPTIONS bit.ly/get_il
Inbound Logistics supports sustainable best practices. Our mission is rooted in helping companies match demand to supply, eliminating waste from the supply chain. This magazine is printed on paper sourced from fast growth renewable timber.
Inbound Logistics welcomes submissions and comments. Email us at editorial@inboundlogistics.com; call (212) 629-1560. For advertising or subscription information, email publisher@inboundlogistics.com. Inbound Logistics is distributed without cost to those qualified around the world. Interested readers may subscribe online at bit.ly/get_il. Subscription price to others: in North America $95 per year. Unqualified subscription prices: foreign $229. Single copy price: N. America $50, foreign $100, back issues $50.
8 Inbound Logistics • July 2025
how to make
your partner
advantage? an
When you partner with Odyssey Logistics, shippers can streamline operations, reduce transportation costs, access advanced analytics, and scale globally — turning complex logistics into a strategic advantage that drives faster delivery, better service, and stronger customer satisfaction. Let’s get there together.
odysseylogistics.com
© 2025 Odyssey Logistics & Technology Corporation
DIALOG @ILMagazine [ INSIGHT ]
Want to join the conversation? FOLLOW US: linkedin.com/company/inbound-logistics facebook.com/InboundLogistics twitter.com/ILMagazine youtube.com/user/InboundLogistics inboundlogistics.com/podcast DROP US A LINE: editorial@inboundlogistics.com unpredictable demand, maximizing existing space makes a lot of sense before jumping into new builds. Upgrading with automation not only boosts ef ciency but also keeps operations exible as market conditions shift. It’s a smart way to get more out of what you already have without the massive investment of a new facility.
Frank Mullens @FrankMullens: AI still can’t make my salad, but it can improve nancial and operational results. Read how companies are successfully using AI in this insightful article from @IL Magazine . Will you use AI? CHEERS FOR GREEN PROVIDERS Re: Inbound Logistics 2025 G75 Green Supply Chain Partners P.J. Kowalski, Green Worldwide Shipping: This makes me so proud as a long- time subscriber to Inbound Logistics ! They continue to create reliable, insightful material for anyone growing their understanding of supply chain management and logistics, with speci c focus on demand-driven content. TASTY TOPIC Re: Inbound Logistics April 2025, How Is AI Transforming Supply Chain Operations?
Hiram Hartnett, Executive Vice
President of Sales: Collaboration for developing long-term 3PL partnerships is table stakes for sure, but often overlooked by key stakeholders. Great read! Phoenix Investors @PhxInvestors: Instead of blanket “reshoring” or “nearshoring” strategies, business leaders should focus on regionalizing assets near core customer markets where it makes the most sense, via @ILMagazine Shyftbase @shyftbase: Hey @ILMagazine , Great reads! One thing though… your Top 20 AI roundup has a gap—agentic AI in the supply chain for automating repetitive tasks, freeing up teams to do more valuable work, and real- time problem solving. Robert Kirk @RobertKDnB: Imagining a resilient supply chain for 2025 opens exciting possibilities. Collaboration and technology will drive us forward. Robert L. Kriewaldt @RobertKriewaldt Ecommerce ful llment operations need to stay on top of the latest trends and strategies to keep up in an ever- changing market.
and all of its tailored components through an era of treacherous change for media businesses. I enjoyed seeing this and remembering your hard-won success. Steve Naru, EVP, Burson: Indeed! Inbound Logistics was among the few at the time writing about the importance of supply chains and logistics. Now nary a day goes by without these topics being discussed in the mainstream! POST-PAYMENT PROPS Re: Inbound Logistics Podcast #202: A Holistic Approach to Post Audit
IL GOES VIRAL Re: Inbound Logistics LinkedIn post, April 24, 2025 POV: Our publisher Keith Biondo gets in on the viral ChatGPT action gure trend to remind you to subscribe to Inbound Logistics! It’s FREE!
Sharita Sharma, Co-Founder &
Director, Orangestar Logistics: Post-payment audits can indeed uncover hidden costs and compliance issues that pre-payment audits might miss. COMMENTS TURNED ON Thanks to our audience on X and LinkedIn for the ongoing dialog about all things logistics and supply chain. Here are some favorite comments: Jeff Morin, Founder, UberSignal.com: Great article about using warehouse automation. With rising costs and
David Bruce, Partner, Perceptual Advisors, Founder at Decibel 62: Go Keith! You certainly have been an action gure ever since I rst visited you and Felecia Stratton with Steve Naru in New York back in the mid 1990s. You recognized the future global importance of logistics and built Inbound Logistics
10 Inbound Logistics • July 2025
10 TIPS
Storm-Proofing Your Shipments
You can’t control the weather, but you can weather-proof your shipments by taking steps to keep operations safe, compliant, and running smoothly.
1 UNDERSTAND WHAT YOU’RE SHIPPING.
that’s applicable to your business. It’s also good for drivers to know what they’re hauling in advance to ensure properly certi ed drivers show up with the right equipment every time. 8 HAVE A BACKUP PLAN FOR SHIPPING. Delays happen, so plan for them. Know which parts are mission-critical and have back-up and/or faster shipping options ready to go. Sometimes paying more for air freight beats shutting down an entire production line. 9 DOCUMENT HOW YOU IDENTIFY DAMAGE. Things break. That’s why you need a documented process to identify and report damaged crates, components, or packaging. Build it into your program so everyone knows what to look for and how to inspect, report, and respond. Every touchpoint is a chance for damage, so stay sharp and keep it traceable.
Not all freight is created equal, especially goods with strict shipping requirements. Items like medical devices and perfume are regulated with specific packaging, labeling, documentation and transportation requirements. Skip the guesswork; if you get it wrong, your shipment might get stuck on a tarmac or never even get out the door.
2 KNOW WHICH REGULATIONS APPLY. Make sure you’re crystal clear on which regulations apply to every shipment. Regulations can differ based on quantity, country, and transportation mode. They also change, so don’t assume that what was correct one year ago is correct today. Keep your nger on the regulatory pulse so you can adjust your shipping work ows quickly and effectively. 3 GET THE RIGHT TRAINING. Everyone on your team plays a role in helping keep shipments safe and operations running smoothly. Make sure they have proper training on how shipments should be packed, handled, labeled, and placarded, and what to do if they spot any damage. Leveraging function-speci c platforms, such as hazmat shipping or customs and trade compliance software, can supplement your training to maximize ef ciency and further validate compliance.
4 ENSURE SHIPMENTS ARE PROPERLY SECURED. Improperly secured freight can tip, shift, or collapse in transit, especially when it’s not properly blocked or braced. Customs can—and will—reject international shipments that aren’t properly secured, potentially leaving you with delays, nes, and rework bills. 5 THINK BEYOND JUST STANDARD PACKAGING. Compliant shipping requires proper packaging. Lithium-ion batteries (and battery-powered devices), for example, need UN-certi ed and tested packaging or crating along with re- retardant materials, absorbent pads, poly bags, and other materials to help stop res if a battery goes into thermal runaway. Some of these items may be off the shelf, but many aren’t—so factor in time to design, test, and build the right packaging. Otherwise, your supply chain may stall until your packaging is ready.
6 COMPLETE PAPERWORK PROPERLY. Make sure shipping declarations are complete, accurate, and signed by someone properly certi ed. Expired training or the wrong signature can delay shipments, get them rejected, or cost you hefty nes. 7 SELECT THE RIGHT CARRIER(S). Don’t choose carriers based only on lanes and cost, but ensure they specialize in the type of freight you ship and have the necessary training and certi cations— such as 49CFR for ground transportation or other industry/function speci c training for packing, handling, and transporting—
10 ALIGN WITH YOUR
SUPPLY CHAIN PARTNERS. Supply chains are complex. Ensure your suppliers, carriers, and logistics partners provide the data, processes, and expertise you need, especially when shipping regulated or sensitive goods, such as hazmat, food and beverage and pharma, among others.
SOURCE: MIKE CICALO, DIRECTOR OF EV BATTERY STRATEGY, DGEO
12 Inbound Logistics • July 2025
GOODQUESTION Readers Weigh In
What Is One Supply Chain “Trade-off” That Is Actually Not a Trade-off?
COSTS DOWN MEANS PERFORMANCE IS UP. Not
People vs. AI
always. Cost control that eliminates waste and duplication is good; but if it squeezes R&D, product quality, etc. it will eventually bring down revenue and profit. Cost and performance (whether operational or financial) are not in a true trade-o like buying vs. saving, or insourcing vs. outsourcing. –Dr. Darren Prokop TECH INTEGRATION VS. COLLABORATION. Many see traditional point-to-point integrations with supply chain partners as a barrier to collaboration. But multi-enterprise platforms can improve the eciency of integration, enabling collaboration. –Henry Ames GM, Logistics Orchestration, TraceLink GLOBAL SOURCING VS. RESPONSIVENESS was once a tension. But with the right data and milestone tracking, you can manage suppliers overseas and still respond in real time. –Rodney Manzo Senior Director, Global Operations, Sage Professor Emeritus of Logistics, University of Alaska Anchorage INVENTORY VS. EFFICIENCY. Increasing inventory levels is seen as a trade-o with service and eciency levels; we find that a win-win-win is achievable. The key: Have the right inventory in the right place at the right time and gain a predictive view of demand to optimize your schedules to reduce inventory while increasing service and eciency. –Lisa Anderson President, LMA Consulting Group
The supposed trade-o between human expertise and AI in supply chain decision-making is a false dichotomy. The most eective strategies combine both. AI enhances human judgment by processing vast datasets, identifying patterns, and suggesting optimizations, while leaving strategic decisions to experienced professionals. This hybrid intelligence fosters superior outcomes and innovation. –Heidi Benko VP Product Management and Strategy, Infor The notion that supply chain managers need to choose between people and technology is false. While digital transformation pressure in our industry is immense, human expertise is indispensable. –Jared Weisfeld Chief Strategy O cer, RXO
“FREE” SHIPPING VS. PROFITABILITY. Sellers may view “free” shipping as a trade-o to profit margins in favor of customer satisfaction, but it’s a powerful conversion tool. Shipping costs are usually factored into the product price, making the oer appear more attractive without changing the total spend. –Sean Collins VP Cross-border eCommerce & Enterprise Procurement, UniUni STAND-ALONE SOLUTIONS VS. INTEGRATION. We often see companies make heavy investments into siloed solutions as a trade-o to investing in a fully integrated system. While small improvements may occur in technology KPIs, the approach can cause long-term stagnation. –Robert Nilsson Chief Commercial O cer, VARGO
PAYING MORE WILL MOVE A LOAD FASTER. In reality, a trucker can only drive so fast—the perceived trade-o being a higher price for faster service. The ability to transport a load quickly is equally dependent on available capacity and the reliability of a carrier. –Dave Sutton COST/QUALITY/SPEED. There is a classic triad of trade-os often cited, namely cost/quality/speed. Pick two. The reality, though, is that these cannot really be traded o. An eective supply chain defines the minimum quality standards, and procurement meets them, trying to optimize for value (cost and time) while providing the required quality. –Joe Adamski Senior Director, ProcureAbility VP Business Development, Montway Auto Transport
14 Inbound Logistics • July 2025
GOODQUESTION
TRACEABILITY VS. THE BOTTOM LINE. The value of traceability is often represented as a cost trade-o . The value of tracing a product’s components, ingredients, or materials through each stage exceeds the cost; traceability provides a foundation for compliance, agility, integrity, and di erentiation. –Je Wells Chief Visionary Ocer, Metrc SAFETY VS. EFFICIENCY. The supposed trade-o between worker safety and operational eciency is a myth. Ecient organizations integrate safety into their operations, leading to fewer disruptions, better productivity, and higher employee engagement. –Josh Ortega VP Safety, Sustainability, and Procurement, Veriforce
Cost vs. Quality
The cost-service quality trade-o is not a fixed rule ; with the right strategies, processes, and technologies, supply chains can simultaneously improve cost eciency and customer service. Take for example AI-driven systems that can identify and prevent flawed decisions like shipping premium air when ground service meets delivery expectations. –Brad Forester CEO, JBF Consulting Don’t sacrifice quality for lower-cost suppliers. Compromising on quality or performance ultimately leads to greater hidden costs, operational disruptions, and long-term damage that outweigh the initial savings. The quality of your supply base is foundational and should not be negotiated. –Bill Remy CEO, TBM Consulting Many assume reducing costs inevitably lowers quality. However, through optimization, territory management, and technology integration, organizations can consistently improve service levels while optimizing costs, demonstrating that cost reduction does not imply decreased quality. –Mat Witte CEO, ORTEC Americas
SUSTAINABILITY VS...
…PROFITABILITY. In reality, sustainable practices often drive eciency, reduce waste, lower costs, and improve brand reputation. –Scott Lehmann VP, Product Management, Sphera …EFFICIENCY. Pursuing sustainable initiatives in the supply chain can seem like it would cost more, but many sustainable transportation solutions enable cost savings and optimize eciency. Retail consolidation, for instance, results in fewer trucks on the road, cutting emissions and saving on fuel costs, while enabling for more direct delivery to big box suppliers. –Jay Gustafson EVP, Brokerage Operations, Echo Global Logistics …GROWTH. Some say you have to choose between profits and a lighter carbon footprint, but more often than not, that’s a false choice. In practice, sustainability goes hand in hand with cost-e ectiveness. Intermodal is a clear example: Greater modal flexibility lowers costs while also reducing emissions. –Charlie Taylor VP Intermodal Sales, Odyssey Logistics
…STRATEGY. Traditionally, companies had to choose between optimizing their networks for long- term cost eciency or staying flexible enough to respond to short- term disruptions like tari s. But the shift from reactionary to dynamic processes is eliminating the old either/or. With cloud-based systems and AI-enabled visibility, businesses can be both reactive in the short term and strategic in the long term without blowing up their budgets or operational timelines. –Farzin Shadpour Partner, Silicon Foundry
SPEED VS...
...ACCURACY. The idea that you have to choose between speed and accuracy is outdated. We’ve seen firsthand how automation and smarter workflows not only reduce delays but also improve data quality and execution. –Karli Sage Sr. Director, Emerging Technology, Southern Glazer’s Wine & Spirits …COMPLIANCE. Cutting corners to save time only leads to long-term risk and cost. “Slow is smooth, and smooth is fast.” With the right partners and infrastructure, brands can achieve fast delivery and regulatory compliance. –Thomas Taggart VP, Global Trade, Passport Global …INVENTORY AVAILABILITY. With AI platforms, you can accelerate decision cycles while improving SKU- level precision. Real-time signals allow you to localize replenishment without inflating total inventory or losing on availability. –Pini Usha CEO, Buers.ai
Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question
July 2025 • Inbound Logistics 15
WHAT’S THE WORD
High-touch freight Shipments that require lots of monitoring and care; owers are an example. Perishable freight like owers requires refrigerated trailers and temperature monitoring. Even a few degrees of difference can accelerate deterioration. TIPS Make sure to consider a logistics provider’s tech capabilities when evaluating your options. Look for providers who offer real-time GPS tracking, as well as a sound transportation management system (TMS) so you have a complete view of operations. Additional technology considerations include AI and analytics software, which enable providers to analyze more freight data and nd exible solutions quickly. –James Holloway, Director of Logistics, Werner Composable Commerce An ecommerce approach where manufacturers and suppliers connect disparate best-of-breed software to create a tailored commerce solution For example, businesses can integrate multiple shipping solutions into a web store, giving buyers flexibility to choose their preferred shipping partner. –Arno Ham, Chief Product Ocer, Sana Commerce Most fulfillment and logistics teams prioritize fast-moving SKUs— those that drive the majority of customer demand. But it’s the slow-moving, long-tail inventory that quietly eats away at margins and clogs up networks. At Amazon, we uncovered a pattern: tail SKUs—those in the bottom 20% of demand—were frequently over-distributed across multiple fulfillment regions, resulting in high transportation costs, longer fulfillment miles, and unnecessary complexity. We took a step back, segmented our inventory, and piloted a centralization strategy. If you’re operating a network with more than 3 distribution or fulfillment nodes, you likely have tail inventory leakage too. Here’s how to act: 1. Segment inventory: Go beyond ABC classification. Analyze percentile-based demand and forecast error. 2. Run cost simulations: Model fulfillment miles and replenishment costs across tiers. 3. Pick central nodes: Use historical demand spread to identify ideal stocking points for tail SKUs. 4. Pilot and iterate: Start with 5-10% of your SKUs, validate, and expand. Centralizing low-velocity SKUs can simplify your footprint, cut cost, and unlock flexibility during seasonal and volatile demand cycles. –Debanshu Sharma, Senior Supply Chain Manager, Amazon Disclaimer: The views and strategies expressed in this article are the author’s and do not represent those of his employer. PAY ATTENTION TO: Tail Inventory
The Language of Logistics
Duty vs. Tari
DUTY
TARIFF
DEFINITION
A direct tax applied by a government on goods and services imported from or exported to a dierent country
An indirect tax applied by a government on goods imported from or exported to a dierent country and on some goods produced domestically
DISTINCTION
Taris are charged on imports and exports to protect domestic production, restrict trade from a particular country, and generate revenue for the government.
A duty is charged to the business or consumer for specific commodities, whether domestically produced, imported, or exported goods and services.
SIMILARITY
Both are taxes levied by the government and the income generated goes to the government.
WHO PAYS
The company importing the goods
For customs duty, the importer of record (an individual or business entity). For excise duty, businesses pay and pass the cost on to consumers.
SOURCE: www.thomasnet.com/ insights/duty-vs-tari
TARIFF TALK: What’s Your Mindset? Terms can be revealing:
Tari strategy ...sensitivity ...triage ...approach ...tactic ...protocol ...response
Tari turmoil ...whiplash ...tangle ...escalation ...turbulence ...volatility ...uncertainty
16 Inbound Logistics • July 2025
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LEADERSHIP Conversations with the Captains of Industry Karla Trotman: Wired to Reshape Manufacturing
Before she became CEO of Electro Soft Inc., Karla Trotman earned 25 cents an hour marking wire with a ruler in her parents’ basement. The company—founded by her parents in 1986—served as both a family business and a training ground. As she grew, so did her skills: From wire stripping to operating a wave soldering machine, Trotman learned electronics from the inside out. Today, she leads the company in delivering high-stakes manufacturing solutions for clients in aviation, rail transit, and beyond. In college, Trotman leveraged her skills and business sense. “There was one phone in each dorm room for two people to share,” she recalls. “On top of that, the cord was too short.” Because Trotman grew up around electronics, she started a small business splitting the phones’ jacks and making the cords longer so both roommates could have phones at their bedside. Trotman holds an MBA from Drexel University and a B.S. in Business Logistics from Penn State University. IL: How has your perception of small business changed? Even though I grew up in a small business, I initially felt I needed to work for a big, glamorous company. But as I had my children, I realized how important legacy is, and how important small businesses are to the economy. I love being able to create the environment that I walk into every day. I want other people to enjoy coming to work. That was a game changer in the way I thought about small business. IL: What challenges are top of mind? Supply chains work as long as everything is perfect and there’s predictability. We’re currently dealing with unpredictability when trying to identify costs associated with tariffs. When there are drastic changes or unpredictability, companies stop everything. This impacts orders and cash ow. That’s a huge concern; things are a bit rough for businesses. IL: How do you navigate family and business? First, it’s not as tumultuous as people on TV make it out to be. When you’ve grown up in a business, you respect it as an entity because many other people—employees, suppliers, and customers—are stakeholders. With that in mind, we make decisions about the business and not personal decisions. Sometimes there are hiccups because people get
Karla Trotman, CEO, Electro Soft Inc.
From cutting wires for quarters to leading a multi-million-dollar electronics company, Karla Trotman says legacy, grit, and humility power her approach to business, family, and the future of American manufacturing.
by Karen Kroll
18 Inbound Logistics • July 2025
LEADERSHIP
We can train anyone to do electronics. But we can’t train people to show up every day on time, to be good teammates, to be kind and courteous, and to take pride in their work. We don’t just want it done. We want employees to realize that what we’re building is going into an important piece of equipment that may be headed to the bottom of the ocean or that will send traf c signals to move families through intersections. We need employees to care. No matter how much skill they have, if they don’t have those characteristics, they will wreak havoc on our culture and make the company a miserable place. IL: If you could host a dinner party with three famous leaders, alive or not, who would you invite? One is Harvey McKay, who had an envelope company and became a New York Times bestseller. His business advice was instrumental as I was learning about business. Second is Emma Grede, co-founder and CEO of Good American, founding partner of SKIMS, and co-founder of Safely and Off Season, who knew how to capitalize on the trend of celebrities aligning with brands. As Wayne Gretzky would say, ‘she would skate to where the puck is going.’ I’m so taken by her. Third is Barack Obama. He’s brilliant, well-read, affable, and engaging. Manufacturing Needs People: Building the Path Forward I’ve known that the United States has a strong need for stateside manufacturing, because Electro Soft has had to turn work away because we couldn’t find employees. That’s because we have not done a good job of marketing manufacturing. To help change this, I knew I had to be a part of a strong network, as there’s strength and resources in numbers. I’m part of the Southeastern Pennsylvania Manufacturing Alliance. We come together as non-competitive manufacturers to look at our issues. We’re all su ering from the cost of training and finding the right trainers. We created career pathways and a training program. Then, we went a level higher and worked with the Drexel Solutions Institute at Drexel University to identify our core problem. Is it marketing? How do we find people? With their research and expertise, we were able to identify that we should be targeting women, people of color, and immigrants. It often hasn’t occurred to them that manufacturing is an opportunity. This work helped us think about how we wanted to go after potential candidates. It was easier than sitting and waiting for the problem to solve itself.
emotionally involved in an issue, but ultimately you have one decision-maker. I value family being involved in the business. For a signi cant part of my life, I’ve had an of ce next to my father. One of my brothers still works with me; that’s meaningful. IL: What characteristics are key for effective leadership? Humbleness is one. You have to be able to accept correction. You need people who are willing to tell you things you don’t want to hear. A sense of humor is second. You have to realize what things you can and can’t control or you go nuts trying to force things to happen in the way that you want them to. Sometimes I have to laugh at myself and say, ‘What am I doing?’ I can’t control the tariffs. I can’t control when a customer sends an order.’ We can only focus on the things we do have control over. IL: What role does your board of advisors play? They’ve guided me in invaluable ways, especially helping me see things in ways I never would have seen on my own. One example: A large customer had gone through a merger and had new supplier agreements. It was an intimidating document coming from a large, publicly traded organization. I thought that as a small business, I didn’t have many choices and I would lose the business if I didn’t sign the document. But a long time ago, I decided never to take business that would cause me to hate myself. I thought I was going to have to walk away from this customer. I pulled in my board and received great advice from every member. One, an M&A attorney, spent time going through the document with me to make it something Electro Soft could live with. Thankfully, the customer was willing to negotiate. Advisory board meetings can get hot and heavy, and the hard truths are always said, but I have tremendous respect for these folks as they have helped me tremendously. IL: What do you look for when evaluating job candidates? When I took over, my management team did an exercise: If you were to recolonize the company on Mars, who would you take and why? We identi ed the characteristics we valued. The common themes were presence, team, and pride. We made those our core values, and that’s how we identify candidates.
July 2025 • Inbound Logistics 19
READERPROFILE Diego Fonseca Strikes The Right Chord
as told to Karen Kroll
DIEGO FONSECA is vice president, supply chain and logistics, with Southern Glazer’s Wine & Spirits (Southern Glazer’s), a preeminent distributor of beverage alcohol. RESPONSIBILITIES: Leading the end-to-end inbound supply chain, which comprises sales and operations planning, replenishment, inventory management, and supplier relationships, as well as logistics and the supply chain center of excellence. EXPERIENCE: Head of digital supply chain transformation; head of supply chain execution, logistics planning lead, and senior manager, sales and operations planning; all with Kraft Heinz Company; management consulting roles with Booz Allen Hamilton; software developer, Convergência Latina Participações e Consultoria. EDUCATION: MBA, operations management, MIT; computer engineering degree, Instituto Militar de Engenharia in Brazil.
G rowing up, my dream was to be a professional musician. I play guitar and nothing makes me happier than being on stage playing the music I love for other people. If musicians were more likely to make money and have a stable living, I’d have probably followed that path. Coming from a lower middle-class household taught me the value of hard work early on. I valued every opportunity as a step toward creating a better future for my family. I joined the military’s school system when I was 10 years old and left 12 years later with a computer engineering degree. After college, I joined a management consulting rm where I worked mainly on supply chain optimization projects. I’m good at working with data and mathematics and like having a balance
between working with people and looking at a screen all day. In supply chain, I could get all this. Southern Glazer’s’ 10-year supply chain transformation strategy and its remarkable history of growth and industry leadership inspired me to join the company in 2024. I’m excited to power its transformation through people, process, and technology. SUPPLY CHAIN A DRIVING FORCE Before the pandemic, supply chain was pretty much a support function. Now, it has become a driving force for a company’s strategy. The culture of supply chain must shift from transactional to problem-solving. At Kraft Heinz, we were able to implement this kind of mindset change on a large scale. Our waste levels on
ingredients and manufactured food and beverage had been growing steadily for years. We launched a cross-functional program to reduce it by 30% in the rst year. That’s where I would say my career really changed. We had been measuring waste at the time products were leaving the warehouse to be destroyed. We shifted to forecasting when products risked moving past their shelf life, moving from a reactive to a proactive approach. We worked with our sales teams to move these items before they became a waste risk, and with manufacturing to prevent production when inventory was not needed. After two years, we had cut waste by two-thirds. This was not driven by technology, but by changing the culture and mindset, and partly by the processes
20 Inbound Logistics • July 2025
READERPROFILE
we put in place to hold people accountable. We’d post data on waste at the leadership level so people from commercial and supply chain teams were all incented to act. At Southern Glazer’s, we have been able to implement the same approach, starting with out-of-stock risks. We created processes to predict stock-out risks resulting from volatility in supply or logistics and solve them before they happen. We assigned our best talent to lead this program. Your top talent should always go to the toughest challenge. That’s when you see the best results. It’s also great exposure and growth for them. My passion for solving supply chain problems keeps me in this eld. I’m always learning and working to provide the best service for our suppliers, customers, and commercial teams. If you want to be challenged, you want to be in supply chain. n
Diego Fonseca Answers The Big Questions 1 What rules do you live by? I live by The Golden Rule, which I learned from my family. How can I see myself in someone else’s shoes, and make decisions that are not only intended to solve my problem but address the collective wellbeing of our organization and people around me? 2 If you could attend any event in the world—whether past, present, or future—what would you choose? The LIVE Aid concert in 1985. Freddie Mercury was the best singer in history and that concert was one
of his last. He was already sick and still did a phenomenal job. It was iconic. 3 If you could accelerate the development of a supply chain disrupting technology, what would you choose? Large language models (LLM, a subset of AI) could be critical for supply chains because we make so many decisions, and our systems rely on multiple databases. Yet in supply chain, everything’s connected. AI could help us connect and learn from past events to make better decisions.
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