Inbound Logistics | October 2024

OCTOBER 2024

SMART MARITIME STRATEGIES CHINA TARIFF HIKES: HOW TO COPE

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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS DEEPFAKE FRAUD: WIDESPREAD AND GROWING

SUGAR RUSH Americans buy about 600 million pounds of candy for Halloween each year, which is roughly 24 pounds per person. This is equivalent to 16 billion fun-size Snickers bars or 158 trillion individual kernels of candy corn. In 2023, consumers spent about $3.6 billion on Halloween candy—a slight increase from 2022 and more than pre-pandemic levels.

25.9% 51.6% ONLY 7.4%

of organizations have experienced 1 or more incidents in the past year.

predict volumes to rise in the next 12 months.

of organizations use detection technology as their #1 tool to identify deepfakes.

–Generative AI and the Fight for Trust, Deloitte poll, May 2024

FANCY FOOTWORK “We have basically tried not to source any products anymore from China into the United States.” –Adidas CEO Bjørn Gulden when asked about the impact of potential tariffs on imports from China during a recent earnings call. The Germany-based footwear giant manufactures its

ROBOTS REACH NEW RECORD 541,302 New robot units added in 2023 4.28 million+ Total number of industrial robots currently operating in factories all over the world 55,389+ New industrial robot units in the United States alone –2023 World Robotics report

products across a global supply chain that excludes China, so it should be in “good shape” if new duties are put in place, Gulden said. The decision to source its U.S. products elsewhere was not made based on the possibility of additional tariffs but rather due to overall “attention” given to the supply chain links—and growing geopolitical tensions—between Germany and China, Gulden noted. JOBS OF

THE FUTURE Here are 10 jobs expected to gain popularity in the workforce as early as 2025. 1. Data detective 2. 3D printing engineer 3. AI specialist 4. IT service broker 5. Sustainable sourcing manager 6. Personal brand manager 7. Ecommerce broker 8. Startup broker 9. Confidence coach 10. Elderly care companion

GOLDEN OLDIE Intella Parts Company, a supplier of aftermarket forklift and aerial lift parts, declared a winner in its contest to find the oldest operating Toyota forklift. Alexander Toolsie of Burlington, Ontario, submitted the winning entry for a 1978 Toyota model 42-3FGC20 forklift. He was awarded a $100 gift certificate to be used on Intella’s website as well as a $100 Visa gift card.

October 2024 • Inbound Logistics 1

CONTENTS OCTOBER 2024 | VOL. 44 | NO. 10

FEATURES 26 STRENGTHENING PORT-RAIL CONNECTIONS U.S. ports embrace rail connections through capital and technology investments designed to move cargo quickly and more efficiently. 32 SMART SAILING: MARITIME SUCCESS STRATEGIES Faced with a complex wave of interconnected challenges, ocean carriers keep shipments on course by refining schedules, enhancing fleets, adding new technology tools, and introducing greener fuels.

INPRACTICE 12 READER PROFILE: MARCUS CHUNG THREADS SOCIAL RESPONSIBILITY INTO SUPPLY CHAIN DECISIONS Ensuring that garments are produced ethically and

GOOD QUESTION What supply chain term will be top of mind in 2025?

efficiently has been the main focus of Marcus Chung’s career. He also works to make an impact beyond his business role by championing sustainability and social impact causes.

INSIGHT 4 CHECKING IN AI power drives supply chain gymnastics 8 10 TIPS Strengthening supplier relationships 10 GOOD QUESTION What supply chain term will be top of mind in 2025? 22 LEAN SUPPLY CHAIN The lean, green supply chain: Where 1+1=3 24 VISIBILITY Improving global rail container visibility INFO 40 WEB_CITE CITY 42 SUPPLY CHAIN INSIGHTS 46 CALENDAR 47 RESOURCE CENTER

37 IT TOOLKIT: NEW ERP SMOOTHS THE WAY

CONTENT PARTNERS 20 GENERIX SOLOCHAIN WMS OFFERS SMOOTH IMPLEMENTATION PROCESS AND EFFICIENCY GAINS Offered by Generix 21 BETTER SERVICE, LOWER COST—THE LTL ELECTRONIC BILL OF LADING Offered by SMC 3 to leverage a scalable solution that has enabled the company to reduce inventory and grow profits. To upgrade its existing ERP, Palmer’s Cocoa Butter maker E.T. Browne Drug Company worked with its long-time partner SYSPRO

INFOCUS 1 INFO SNACKS 14 NOTED 16 TAKEAWAYS 44 IN BRIEF 48 LAST MILE Peak season pitfalls and perils

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

2 Inbound Logistics • October 2024

Artificial Intelligence meets Critical Intelligence

Michael Irwin Michael experiences the potential and pitfalls of AI on a daily basis. As the Chief Information Security Officer, he is at the cutting edge of enhancing operational procedures and counteracting emerging sophisticated threats. Michael and his team maintain constant vigilance, safeguarding the integrity of our customers’ supply chains.

Odyssey is a company built on the strength of its people — knowledgeable logistics professionals. We are now leading the way by catalyzing supply chain resiliency, using 20 years of insights, data and analytics to build AI-driven, connected systems.

Learn more today odysseylogistics.com

CHECKINGIN AI Power Drives Supply Chain Gymnastics

Vol. 44, No. 10 October 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

STAFF

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

PUBLISHER

I f you’re reading Inbound Logistics , you already drank the supply chain Kool-Aid. But many others in our audience are tasting the inbound logistics brew for the first time. “Inbound logistics makes sense,” they say as they sip. “But it’s a lot more complicated than just letting my vendors and logistics partners control my inbound flow. I just don’t think I can handle that.” It tastes great, but all those inbound data points make

EDITOR

SENIOR EDITOR

DIRECTOR OF STRATEGIC CONTENT

Amy Roach amy.roach@thomasnet.com

Merrill Douglas June Allan Corrigan Karen M. Kroll

CONTRIBUTING EDITORS

Keith Biondo, Publisher

it more filling. Would a chaser make that brew more palatable? Got one for you: AI. Inbound logistics and AI is a combination that really shines in times like these. Amplifying your inbound programs using artificial intelligence will give you more choices and more alternatives, and flatten the impact of disruptive events, such as the recent ones that have likely affected you: hurricane devastation, strikes, low tide in the Panama Canal, blockage in the Suez Canal, collapsing bridges, rocket and drone attacks on maritime commerce, BRICS’ attack on the greenback as the world’s trade reserve currency, wars, trade wars, rail disasters, over-regulation. Enough! Maintain margins during supply chain disruptions? Sure. But it’s also important to lock in customers with your brand when things go sideways for them. Stew Leonard Jr., president of Stew Leonard’s, said that the regional supermarket was going to have to do “some supply chain gymnastics” to ensure customers have plenty of the products they know and love. Blending AI with your efforts to match your supply more closely to demand makes all those extra data points more manageable. Whatever management tools you use for data analytics—from basic spreadsheets to a best-in-class TMS, and including tie-ins with your logistics intermediaries, brokers, forwarders, and 3PLs—you can fire up decision-making on the fly by using AI to make sense of all those increased data points. Many leading logistics partners are investing in AI right now to serve you better, faster and more efficiently. Tie their solutions to controlling your inbound flow. Inbound logistics and AI drive enterprise efficiency in normal times, if we ever have normal times again. But that combination can mean the difference between surviving the next catastrophe and losing customers, market share, and maybe much more. It will earn you a gold medal in supply chain gymnastics.

Jeof Vita jvita@inboundlogistics.com

CREATIVE DIRECTOR

DESIGNER Arlene So

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.

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4 Inbound Logistics • October 2024

WHAT IF DELIVERING FREIGHT COULD ALSO DELIVER YOUR SUSTAINABILITY GOALS?

See how 19,500 route miles and over 270 short line partners can move your freight further on rail — and make your supply chain even lighter.

NorfolkSouthern.com/Intermodal

Less impact on the environment deserves more recognition. These SmartWay Partners are leaders in freight supply chain efficiency and environmental stewardship. They put sustained effort into sustainability, and their achievement reflects ours. This year, U.S. EPA’s SmartWay Transport Partnership marks 20 years of progress in empowering businesses like yours to move goods in the cleanest, most energy-efficient way possible while protecting public health and reducing the impact on the environment. Congratulations to the 2024 SmartWay Excellence Awardees!

Arrow Transportation Bridgestone Americas Tire Operations Canadian Reefers Ltd. Cargo Transporters Covenant Transport Crete Carrier Corporation CRST The Transportation Solution Inc D&D Transportation Services Inc Danny Herman Trucking Inc Discount Tire Divine Enterprises, Inc. Dollar Tree Stores, Inc Edgewell Personal Care Elevate Textiles, Inc. Forza Transportation Services, Inc Gap Inc. Canada Gap Inc. USA Georgia-Pacific Consumer Products LP GP Transportation Co

Knight Transportation, Inc. Kohl’s

Lowe’s Companies, Inc. May Trucking Company McDonald’s USA, LLC Meijer Mesilla Valley Transportation Mike Frost Trucking, Inc. Nussbaum Transportation Services, Inc. Ocean Spray Cranberries, Inc Paper Transport, LLC Prime, Inc. Royal Trucking Company Ryder Dedicated Transportation Solutions (DTS) Saia Motor Freight Line, LLC Schneider Swift Transportation Co. of Arizona, LLC The Home Depot U.S.A., Inc

The TJX Companies, Inc. Tractor Supply Company Trans-West Logistics Inc / Logistiques Trans-West Inc. Werner Enterprises Western Express, Inc.

Hirschbach Motor Lines Hogan Transports, Inc. Keane Thummel Trucking Inc. Kellanova Kimberly-Clark Corporation

To learn how your company can achieve excellence visit: epa.gov/smartway

10 TIPS

The supply chain is a business built on relationships. The stronger your relationships, the stronger your business. Here’s how to create ties that bind. Strengthening Supplier Relationships

1 GET TO KNOW YOUR

8 FACILITATE REGULAR BUSINESS REVIEWS. Keep dialogue open by designating a specific cadence to revisit goals, review current performance, highlight recent wins and discuss any challenges. Align on what cadence works best—monthly, quarterly and/ or annually—and consider reviews that include top management for full visibility and alignment from both parties. 9 ALLOW EACH OTHER TO FAIL AND CORRECT. Particularly in the beginning, give each other grace by allowing both sides to fail and correct. Great relationships don’t form overnight, and it takes time to understand the complexities of each other’s businesses. Be accepting of feedback and understand that challenges and mistakes will happen. It’s how you navigate those together that matters most.

SUPPLIER’S BUSINESS. Establish a foundation of trust off the bat by immersing yourself in your supplier’s business. As part of this, visit their operations—headquarters, terminals, warehouse locations—to gain a better understanding of their work at all levels of the business.

2 CONSIDER SUPPLIERS AS A BUSINESS EXTENSION. Give suppliers visibility and transparency into your

comes time to renew terms, be proactive. Don’t automatically renew; make sure all terms reflect the current needs of both groups given today’s dynamic, ever-changing supply chain landscape. 5 DETERMINE EXPECTATIONS. Mutual success is at the root of any supplier relationship. Be transparent with your expectations, but allow space for your supplier to share feedback to come to a mutually agreed-upon understanding that allows both parties to be successful. 6 PROMOTE SUPPLIERS TO YOUR PEERS. When given the opportunity, vouch for your suppliers

and promote them to your peers, whether that’s at conferences or in organic conversations. Exchange leads and vendor contacts with your suppliers for the ability to tap into cross- selling opportunities that are mutually advantageous. 7 INTEGRATE COMMUNICATIONS. Prioritize keeping your suppliers up to date on business activities by enabling regular two-way communication at every level of the relationship, from the top down. This will enable open communication when business is good, but also when it’s inevitably time to navigate a disruption or challenge together.

business performance and goals. Ultimately, your suppliers are only

as good as the access and information you give them to your business so they can successfully do their job. 3 SHARE THE BIG PICTURE. Be willing to share the full picture of your business strategy; not just the specific piece of the puzzle that directly pertains to the supplier. The supply chain is intricately linked together and the more context you can share with your suppliers, the more adaptable and flexible you’ll be together when challenges arise. 4 ESTABLISH AND REASSESS AGREEMENTS. Agree on terms for your partnership early on. Regularly revisit terms to ensure they still reflect your needs and your supplier’s capabilities. When it

10 PRIORITIZE AND VALUE HUMAN INTERACTION.

As technology continues to integrate into the supply chain, human interaction is only becoming more valuable. Avoid solely transactional experiences and certainly don’t rely on them. Ensure you have regular video calls and in-person meetings with your suppliers. By prioritizing human interaction, you open the door to more organic conversations and naturally build a stronger relationship.

SOURCE: DOUG FRANK, SVP OF TRANSPORTATION MANAGEMENT & PROCUREMENT, GEODIS

8 Inbound Logistics • October 2024

GOODQUESTION Readers Weigh In

What Supply Chain Term Will Be Top of Mind in 2025?

OPTIMIZATION. 2025 will be a year of optimization as companies look to offset the impact of prior years’

Artificial Intelligence Commands Attention

high inflation. After considerable effort spent improving our supply chain footprint, sustainability profile, and tools/processes over the past two years, we’re looking forward to building on that to optimize how we make and deliver our products. –Crist Jennings COO, Bragg Live Food Products CONVERGENCE because we can’t afford to have planning and operations working in their separate silos where plans can’t be executed or if they can they are very expensive to execute. Good companies plan. Great companies execute. –Tom Moore Founder & CEO, ProvisionAi GROUND TRUTH and condition tracking, the ability to collect hyper-accurate, multimodal shipment data—in real time—is unlocking tremendous ground truth insights that are optimizing lanes and routes, minimizing dwell times, geofencing cargo theft danger zones, and more. –Steve Bonadio VP, Global Marketing, Tive DATA-DRIVEN SUPPLY CHAINS. Companies have been investing in technology that creates massive amounts of supply chain data—customer behaviors, orders, INSIGHTS. As the industry moves from passive shipment tracking to real-time location warehousing, delivery, vehicles, drivers, and more. It is increasingly

AI will be the defining supply chain term in 2025. This high-potential technology will deliver real benefits across many processes— from predictive analytics to automation and real-time optimization. Implementing AI will be indispensable for managing risks and staying competitive as supply chains grow more complex. –Lilian Bories Director, Marketing, TradeBeyond The true power of artificial intelligence capabilities has yet to be seen, and we are all trying to figure out how to deploy it effectively in our businesses. AI will play a major role in supporting sustainability initiatives, personalization of customer and worker experiences, supply chain visibility, quality, accuracy, and overall customer satisfaction. –Bart Cera CEO, VARGO® An obvious answer, but it’s clearly artificial intelligence. Adopt it or be a laggard. It will dominate discussions. –Mark McEntire CEO, Princeton TMX

necessary to use AI to create meaning from data. If companies do not start to make sense of it, they’ll be left behind in the wave of innovation coming from AI-based analytics.

experience—damaging customer trust and brand growth.

–Sylvia Ng CEO, ReturnBear

STAGFLATION —a mix of slow growth and rising costs—could challenge shippers, carriers, and third- party logistics providers, squeezing profit margins. To navigate, companies should diversify suppliers, leverage technology to enhance efficiency, and evaluate transportation models. Plan for reduced demand and increased costs now. –Frank Granieri COO, Supply Chain Solutions, A. Duie Pyle

–Cyndi Brandt Vice President, Fleet Solutions, Descartes

CROSS-BORDER will be top of mind. International sales are growing at twice the rate of domestic sales, and as ecommerce booms, international markets present huge opportunities. Without a solid cross- border strategy, companies face risks like delayed shipments, higher costs, compliance issues, and poor customer

10 Inbound Logistics • October 2024

GOODQUESTION

SCENARIO PLANNING. Disruptions, from labor strikes to geopolitical tensions, defined the supply

Resilience Tops Priority Lists

chain in 2024 and have become the new normal in operations. Businesses must proactively brace for disruptions via near- and long-term scenario planning. –Ara Ohanian CEO, Netstock DIGITAL TWIN TECHNOLOGY will grab the spotlight as supply chains confront unprecedented complexity and unpredictability. Digital twins will evolve from niche tool to essential asset, enabling companies to simulate and stress- test entire networks, anticipate disruptions, and optimize operations. –Fred Baumann Senior Industry Principal, Kinaxis PREDICTIVE ANALYTICS will lead supply chain conversations, as small businesses leverage it to sharpen demand forecasting. With better planning, businesses can dodge costly surprises, reduce expedited shipping, and avoid overstocking, streamlining their entire supply chain. –Ben Hussey Co-CEO, Katana Cloud Inventory REGULATORY RISK. With an influx of new

Building resilient supply chains involves embracing risk management, diversifying suppliers, and boosting adaptability to handle disruptions. –Kelly Martinez Founder & Co-President, ePost Global Resiliency will be the key supply chain term. As companies adapt to changes like de minimis limits, they’ll notice reliance on a single supply chain strategy or single carrier isn’t always the best option. Cyber resilience will also be crucial as recent attacks have exposed supply chain vulnerabilities. –Maggie Barnett CEO, LVK Supply chain resilience will be top of mind, driven by climate-related disasters, post-pandemic cost-cutting, and political instability. Supply chains will use artificial intelligence models and simulations that predict global disruptions, expose supply chain vulnerabilities, and identify opportunities for value generation. –Matthew Bunce Decision Intelligence Engagement Principal, Aera Technology We’ve seen the impact disruptions like weather events and geopolitical instability can have on global supply chains. We anticipate the continuation of these challenges. By prioritizing proactive risk management and diversifying your supply chain, you can mitigate interruptions in your operations and become resilient.

–John Marrow President, Supply Chain Solutions, RRD

ANTIFRAGILE. Beyond resilience, antifragile supply chains enable companies to adapt, learn, and gain strength from volatility. This approach goes beyond withstanding shocks to actually improving from them. Companies embracing antifragility in their supply chains will be better positioned to thrive amid uncertainty and gain a competitive edge. –LeAnne Hester Chief Product Officer, Resilinc

NATURAL LANGUAGE PROCESSING (NLP) is a technical application that top supply chain companies will be talking about in 2025. Using NLP in email drives efficiency through automation and could be the single biggest value addition in the supply chain tech space in the coming years. –Zach Jecklin Chief Information Officer, Echo Global Logistics

legislation, like the CSDDD and EUFLR, companies are

finding themselves held accountable for where and how their products are made. This heightened focus adds new layers of complexity, pushing organizations to rethink how to anticipate and mitigate risks to ensure long-term growth. –Henry Sherman Product Director, Sayari SUSTAINABILITY. Augmented reality and 3D modeling will drive this focus by reducing returns and waste. They streamline operations, aligning supply chains with the increasing consumer and business demand for sustainable practices. –Angelo Coletta CEO & Founder, Zakeke

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

October 2024 • Inbound Logistics 11

READERPROFILE Marcus Chung: Guiding a Sustainable Career

as told to Karen Kroll

MARCUS CHUNG is chief operating officer of Coyuchi, which develops sustainable premium home textiles.

RESPONSIBILITIES: Ecommerce and retail operations, supply chain, sourcing, production, sustainability, and IT. EXPERIENCE: Vice president, manufacturing and supply chain, ThirdLove; director, sourcing, Stitch Fix; vice president, responsible sourcing, The Children’s Place; director, responsible sourcing, Talbots; director, sustainability, McKesson; senior manager, social responsibility strategy, Gap Inc.; consultant, CEB (now Gartner). EDUCATION: MBA, University of California, Berkeley; BA, Wesleyan University.

I began my career as a consultant. It was like an extension of school because I gained exposure to many different companies, but I wasn’t actually managing a part of the business. Because I didn’t have a formal business background, I needed to gain the skills and competencies so I’d feel confident that I could succeed in an operational role. When I went back to business school, it seemed like a natural way to transition from an external advisor role to being an operator. After business school, I started at Gap Inc. as part of its social responsibility and corporate sustainability team. A lot of our work involved partnering with the factories that produced our goods overseas and protecting the rights of workers, as well as managing the

sustainability impact of our operations around the world. To be effective and help influence decisions, I had to put myself in the shoes of the people in other functional areas. For example, if we needed to move production away from a factory that’s not complying with our standards, how do we manage that in a responsible way for the business? SHIFTING TO SUPPLY CHAIN The more I advanced in my career, the more I enjoyed supply chain and operations. I organically moved into more commercial roles. It’s rewarding to be making decisions. Supply chain is such an interesting, dynamic part of business. We have to think about how issues in faraway

countries can impact us, whether the disruptions in the Red Sea, or elections in different countries that might shift trade relationships. I love how global it is. I still have a mindset on sustainability and social impact. Now, I’m in a position where I can guide my team so they consider these impacts as part of everyone’s jobs. There’s a lot more awareness about sustainability and the impact supply chains can have on people and the planet. When I started out, we’d have to explicitly ask about organic cotton options and there’d be, say, two swatches. Now, suppliers have entire books of eco collections, with recycled, organic, regenerative, and other options. Having an impact beyond the business operations also motivates me.

12 Inbound Logistics • October 2024

At the Children’s Place, we led a coalition of apparel brands that formed the Alliance for Bangladesh Worker Safety. This was to strengthen protections for workers in Bangladesh factories after the collapse of Rana Plaza. That effort had real impact on the people of Bangladesh and on the industry overall. MANAGING CHANGE Coyuchi is a company of fewer than 40 people. When we introduce big initiatives, like implementing a new ERP system, almost the whole company gets involved. That’s on top of their day jobs. My role as a leader is to help my team prioritize, because there’s always more than we can do. The hardest part is saying no and allowing others to say no to things that are not making a difference, or that we’re not able to execute in a way we can feel proud about. I am not great at this yet, but I’m working on it. I want to make sure we’re as focused as possible on the things that are moving the needle. My early experience in roles in which I was not the decision maker informed how I lead today. I try to bring people along, collaborate, and ensure everyone can provide input and understands where we’re going. Even if we don’t unanimously agree on the outcome, the process helps us all become confident that we’ve landed on the right decision. One direct report said my management style is like a wilderness explorer leading a team. To reach the goal, you can’t lead by being militaristic and yelling orders. n

Marcus Chung Answers the Big Questions 1 What’s the best leadership/supply chain advice you

like I have to say swimming even though I haven’t been in a pool in years. 3 What gets you out of bed in the morning? Unfortunately, it’s usually one of our cats, who recently started meowing loudly at 4:30 a.m.

ever received? Always create contingency plans. 2 If you could represent your country in the Olympics, for what sport would it be? I grew up swimming competitively and was captain of my undergraduate swim team. I feel

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October 2024 • Inbound Logistics 13

NOTED [ IN FOCUS ]

The Supply Chain in Brief

> GOOD WORKS

> SEALED DEALS

• St. Jude Children’s Research Hospital named Averitt the 2024 Workplace Giving Partner of the Year. This is the fourth time Averitt has been recognized with this award for its continuous support of St. Jude.

• Solar Coca-Cola is using Descartes’ route execution and fleet performance management solution to optimize the last-mile delivery performance of 1,400+ drivers across 44 distribution centers and 13 production facilities serving an area that represents 70% of the country.

> GREEN SEEDS

n Clean Energy Fuels Corp., a renewable natural gas provider, launched a program to allow heavy-duty fleets to operate a truck equipped with the new Cummins X15N engine. J.B. Hunt Transport is the first company to participate in the program.

• Incora was awarded a multi-year contract to further extend the scope of its partnership with AVIC Group and its subsidiary Xi’an Aircraft Industrial Corporation. Under the contract, Incora will deliver a suite of supply chain solutions, including just-in- time product delivery facilitated through Incora on-site personnel in Xi’an. • Xtreme Trucking of Wisconsin chose HOPTEK for its Dispatch Engine solution, a digital platform providing instant visibility and access to the spot load market, while matching available carrier capacity across thousands of possible options. HOPTEK’s digital twin will provide real-time visibility and enable Xtreme to boost operational efficiency and fleet utilization, while reducing driver turnover and deadhead miles. • Under a new partnership, Kodiak Robotics will utilize Wabash’s Trailers as a Service (TaaS) offering, a holistic solution that supports the full life cycle of the trailer, from acquisition to maintenance and uptime management.

> MILESTONES

n Landstar System recently gave away its 50th truck to an independent Landstar business

capacity owner. Stacie Simmons won a 2025 Kenworth T-680 at the 2024 Landstar BCO Appreciation Days event in Durant, Oklahoma.

n Southeastern Freight Lines is celebrating 35 years of “Quality Without Question” service at its service centers in Miami and West Palm Beach, Florida.

> UP THE CHAIN

James Bryant was promoted to chief operating officer of RK Logistics Group. In his new role, Bryant oversees RK’s network- wide operations, and is responsible for strategic planning and operational execution.

Andy Dyer was named the new CEO of AFS Logistics. He has more than 25 years of supply chain and transportation experience, including 20+ years at XPO Logistics.

4flow expanded its SAP partnership to the United States and named Akhilesh Mohan to oversee the practice as vice president of supply chain consulting. Mohan comes to 4flow from Accenture.

14 Inbound Logistics • October 2024

NOTED

> M&A

> RECOGNITION

• Uline presented Dayton Freight Lines with the 2023 Exceptional Performance Award and the

Minnesota LTL Carrier of the Year awards. Both awards were given based on exemplary customer service, technological innovation, and partnership and dedication.

• Hyster’s hydrogen fuel cell-powered ReachStacker has been recognized by three award programs for helping operations decarbonize by making the shift to electric material

n In its biggest transaction to date, DSV will acquire Schenker from Deutsche Bahn. The acquisition will strengthen DSV’s global network, expertise and competitiveness. n Descartes acquired MyCarrierPortal, whose solutions help freight brokers and shippers quickly set up carrier requirements through an onboarding platform. n Manitoulin Global Forwarding (MGF) acquired Multimodal, a family-run business based in Costa Rica. This strategic move marks a significant step in MGF’s expansion into Central America, broadening its market presence and enhancing its service capabilities. n Air Van purchased Imeson Distribution Center, a logistics provider that has accommodated commercial transportation services since it was founded in 1983. The acquisition increases Air Van’s total space to 800,000+ square feet of mixed storage availability. n Kabal Software acquired Trackit Energy, a move that enables the company to offer enhanced support and benefits to customers in the Asia Pacific region and beyond. n Easy Metrics purchased TZA, a labor management system provider offering robust engineering features that enhance operational visibility for warehouses and manufacturers. n Wolter strategically expanded its footprint by acquiring Dedicated Material Handling Solutions. This acquisition enables Wolter to bring its services and product offerings to the Atlanta Metro area.

handling equipment. The solution, which produces zero tailpipe emissions, is currently being tested and validated at the MSC terminal in Valencia, Spain.

• Dachser was honored with the Sustainability Excellence Award presented by the Global Supply Chain Institute of the University of Southern California.

• Coca-Cola designated The Allen Lund Company as 2024 Customer Service Carrier of the Year at its recent Annual Carrier Conference.

• Combilift’s Heavy Duty Equipment Team was awarded Design Team of the Year at the 2024 UK Engineering & Manufacturing Awards for their work on the 12-Wheel “Combi-LC

Blade,” a cutting-edge machine specifically engineered to handle offshore wind turbine blades.

• Warehouse on Wheels was recognized for outstanding corporate growth, innovation, and community impact by the Association for Corporate Growth Cincinnati chapter. The award honors companies that have made significant contributions to their industries.

• NEXT Logistics won a Fleet Safety Award from the

Wisconsin Motor Carrier Association for the third consecutive year. The award honors the safest truckload fleets in Wisconsin.

October 2024 • Inbound Logistics 15

TAKEAWAYS Shaping the Future of the Global Supply Chain

Digitalization of the container shipping industry is gaining ground—and that’s a good thing, according to the Digital Container Shipping Association’s State of the Industry Report 2024 . The report reveals that stakeholders from across the container shipping sector perceive clear benefits of digitalization. For instance, 86% of cargo owners see digitization as a tool for operational efficiency while ports and terminals highlight its value in enabling scalability. Banks, meanwhile, highlight the potential for risk reduction. The container shipping industry still has a way to go on the path to digitalization, however. Outdated infrastructure, a lack of proactive investments, and resistance are among the challenges to digitalization. Additionally, respondents indicate that digital standards will be key to enabling seamless operations. GETTING TO DIGITAL

SLOW WAREHOUSE = SPEEDING TRUCK DRIVERS? Next time a truck speeds by you on the highway, consider that the driver may be trying to make up for lost time after being detained at a warehouse or distribution center. That’s one hot take from the American Transportation Research Institute (ATRI)’s recent report that quantifies the productivity and safety consequences of truck driver detention at customer facilities. Detained trucks drove 14.6% faster on average than their undetained counterparts , indicating a troubling correlation between detention and unsafe driving practices, finds ATRI. The research quantifies the direct costs for fleets, truck drivers, and supply chains in general. It also corroborates previous research that found detained trucks drive faster both after and before a detained trip occurs. Here are some other key data points from the report: • Drivers reported being detained at 39.3% of all stops in 2023 . The frequency of detention was even higher among women drivers (49.1%), refrigerated trailer drivers (56.2%), and among fleets that operate in the spot market (42.5%).

STAKEHOLDER GROUP

CURRENT TOP DRIVERS FOR DIGITALIZATION

CURRENT TOP BARRIERS TO DIGITALIZATION

CARGO OWNERS

• Lack of visibility into supply chain • Technological limitations

• Is a tool for improving operational efficiency • Provides better real-time tracking and visibility

OCEAN CARRIERS

• Job security concerns • System complexity

• Improves customer satisfaction • Enables competitive differentiation

FREIGHT FORWARDERS

• Technical issues—integration with legacy systems • Insufficient investment

• Supports enhanced communication and

•

Truck drivers were detained between 117 and 209 hours per year , depending on the sector. In for-hire trucking alone, the total time lost to truck driver detention exceeded 135 million hours in 2023. While 94.5% of fleets charge detention fees, they are paid for in fewer than 50% of those invoices. As a result, t he trucking industry lost $3.6 billion in direct expenses and $11.5 billion in lost productivity from driver detention.

operational efficiency through a shift toward real-time data

•

PORTS & TERMINALS

• Job security concerns • Pushback from unions

• Enables scalability • Eliminates manual processing and human interaction through data integration

Source: Digital Container Shipping Association

16 Inbound Logistics • October 2024

TAKEAWAYS

CARGO THEFT ON THE RISE

 600% Cargo theft, the most prevalent form of fraud, has seen a dramatic increase between November 2022 and March 2023.

43% of survey respondents say unlawful brokerage scams are their primary concern as financial fraud becomes increasingly common.

$402,340 Average gross cost of fraud

98% of survey respondents say truckload freight is the most vulnerable. affecting the entire supply chain— and, ultimately, consumers—as reported by respondents.

California, Texas, Illinois, Georgia, and Florida are identified as having the highest incidents of theft.

Source: The Transportation Intermediaries Association

“AN INDUSTRY UNDER SIEGE” An alarming rise in cargo theft has shippers and trucking

The report highlights these key cargo theft data points: • Truckload freight remains the primary target for fraud, with 98% of respondents identifying it as the most vulnerable mode of transport. • The average gross cost of fraud reported by TIA members stands at approximately $402,340, with an average cost per load of around $40,760. • Certain states, particularly California, Texas, Illinois, Georgia, and Florida, have been identified as hotspots for cargo theft. • The most commonly stolen commodities include electronics, solar panels, and household goods. In addition, as cargo theft becomes increasingly sophisticated, new tactics are emerging. For example, criminals are manipulating motor carrier (MC) numbers, purchasing previously vetted MC numbers to pose as legitimate trucking companies, notes Scott Cornell, transportation lead and crime and theft specialist for Travelers. This allows them to steal multiple loads before being detected. How can shippers combat these growing threats? Cornell recommends the following actions: • Enhanced vetting processes. Freight brokers should implement more rigorous background checks and continuously update carrier information to avoid partnering with potentially compromised carriers. • Improved real-time communication. Establishing better communication channels between shippers and brokers can help share load details promptly, making it harder for thieves to exploit information gaps. • Prioritize thorough checks. Despite the industry’s fast-paced nature, prioritizing detailed checks and verifications can prevent thieves from slipping through the cracks.

providers on edge—and unhappy with existing efforts to combat the surge of fraudulent activity. Cargo theft increased by 33% in the second quarter of 2024 compared to the previous year, finds the Transportation Intermediaries Association’s (TIA) latest report on the state of fraud in the transportation industry. “We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain,” says Anne Reinke, president and CEO of TIA. “When people think of fraud in the supply chain, they only see what is happening to a business; they are not seeing the trickle-down effect to consumers and the economy. Fraud is a multi-million-dollar problem that needs to be addressed today.”

OVERHEARD

“ The holiday season is coming up fast. A focus on value proposition and customer experience is going to be what it takes to win. The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under- invest in their stores. They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.” —Nikki Baird VP of Strategy & Product, Aptos

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TAKEAWAYS

RESOURCEFUL SOURCING FOR THE WIN

In September 2024, the Biden Administration finalized its plan to raise tariffs on $18 billion worth of Chinese imports, including: • 100% tariff on electric vehicles

Which supply chain strategies are shippers most likely to adopt as a result of the new China tariff hikes?

• 25% tariff on lithium-ion EV batteries • 50% tariff on photovoltaic solar cells

Syfan_Publisher_NewDesign.pdf 1 8/14/24 12:16 PM production as a likely new strategy, just 22% say that using alternate import routes will be key to reducing the impact of these new tariffs. In an online poll, Inbound Logistics asked shippers how they expect these tariff hikes will change their supply chain strategies. A clear winner emerged: 43% of respondents say they most likely will begin sourcing goods from other countries as a way to circumvent these tariffs. This approach can help reduce reliance on Chinese goods and mitigate potential losses. While 36% of respondents cite investing in domestic

Use alternate import routes Invest in domestic production Source from other countries

43% 36%

22% Source: Inbound Logistics online poll

18 Inbound Logistics • October 2024

TAKEAWAYS

WHERE ARE THE WOMEN?

While women working in the supply chain sector are no longer an anomaly, the growth of female representation in supply chain roles seems to have stalled. Results from Gartner’s 2024 Women in Supply Chain Survey show that women represent just 40% of the supply chain workforce, which is a one-point decrease from 2023. While gains were achieved in frontline roles, the study uncovers the need for chief supply chain officers to recommit to goals, inclusive

1. Lack of formal goals: While 70% of supply chain organizations have an objective or goal to increase the number of women leaders in supply chain organizations, only 29% have direct accountability for this goal on their management scorecards. This is a decrease of four percentage points from 2023. 2. Less focus on pay equity: In the 2024 results, a lower percentage of supply chain organizations have a plan to close pay gaps, and a higher percentage of respondents say they have no plans to close their gaps. 3. Progress in frontline roles: Of

leadership, and accountability to ensure gains from previous years are not erased, according to Dana Stiffler, vice president and distinguished analyst in Gartner’s Supply Chain practice. Three key takeaways highlight the roadblocks and accomplishments on the way to greater female participation in the supply chain workforce:

the organizations surveyed that have frontline workforces, respondents indicate over one in three (36%) frontline employees are women, an increase of five points over 2023.

EXPEDITED FLAT BEDS

TEMP CONTROL PORT DRAYAGE YARD MGMT SUPPORT FULL TRUCKLOAD POWER ONLY AUTOMOTIVE PARTS FOODSTUFFS LOGISTICS

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