Inbound Logistics | March 2024

MARCH 2024

GEORGIA: MAGNET FOR BUSINESS

GLOBAL LOGISTICS: COMPLIANCE, TRENDS & TAKEAWAYS

Info SNACKS BITE-SIZED SUPPLY CHAIN/LOGISTICS INFORMATION

33% Of companies are reducing the number of suppliers this year 63% Are aiming to diversify suppliers in response to continued geopolitical risks PLATEAUED BUT ELEVATED

3D-PRINTING SLAM DUNK Wilson Sporting Goods has developed a 3D-printed, airless basketball. Instead of being air inflated like a regular basketball, the Airless Gen1 sports a polymer lattice structure that helps the ball flex and spring back, mimicking the bounce of a traditional basketball, with the same performance specifications. It can do all the things a regular basketball can, including bounce, dribble, and swiftly fly through the air. The 3D-printed version features eight panel-like lobes that eliminate the need for the ball to be inflated. Dotted hexagonal holes over its surface allow the air to pass through it more freely. Purchase price? A mere $2,500. A CLEAR CAREER • 81% of women and 74% of men recommend a career in manufacturing • 83% of respondents report labor shortages, particularly for entry- level positions • 71% of women and 56% of men enter the manufacturing industry unintentionally -Xometry and Women in Manufacturing’s 2024 Career Advancement in Manufacturing Report

HAVE AN ICE DAY A Greenland start-up is getting an icy reception from environmentalists for shipping 100,000-year-old Arctic ice to chill cocktails in Dubai. Arctic Ice claims its product is the “oldest and purest” ice in the world because it is harvested from icebergs in Greenland—4,730+ miles from Dubai. The company says it takes the ice from icebergs already naturally detached from the glacier and floating in Greenland’s Nuuk fjord. Arctic Ice packs the ice in refrigerated shipping containers for transportation to Dubai, where it is distributed to bars and restaurants. Arctic Ice claims that its operations are designed to minimize the impact on the environment by using exiting cargo shipping routes and reducing carbon dioxide emissions per container shipped to and from Greenland. “A wakeup call for all of us in the port and supply chain industry.” – Eugene Seroka, Executive Director, Port of Los Angeles, on President Biden’s executive order calling for a $20-billion cybersecurity investment in U.S. ports

Container prices following Chinese New Year

–Container xChange Market Forecaster, March 2024

TRAIN ME AND I’LL STAY • 71% of frontline warehousing/logistics workers and 86% of managers say they want continuous learning/skill development. • 64% of workers and 73% of managers would extend their tenure by six years with improved career support and training. • 57% of managers would be willing to stay for 10 years or more. • 51% recognize AI’s importance as a skillset but need support to learn about it. –Kahoot! workplace culture report

March 2024 • Inbound Logistics 1

CONTENTS FEATURES 24 GLOBAL TRADE COMPLIANCE: HOW TO PLAY BY THE RULES MARCH 2024 | VOL. 44 | NO. 3 40 SPONSORED GEORGIA: MAGNET FOR BUSINESS

Whether it is for Georgia’s favorable cost of living, business-friendly policies, superior workforce, educational assets, or transportation resources, companies consistently choose Georgia to site new facilities and to sustain growth in an increasingly global economy.

Complex government requirements regarding global trade will create new impacts for many shippers in 2024. Which rules and regulations affect your business and what steps should you take right now to comply?

30 TAKING A PEEK AT PEAK SEASON

It’s never too early to prepare for the holiday peak season, especially with disruptions mounting amid solid consumer spending. Shippers and carriers are employing automation, data-based decision making, and smart inventory management strategies—and tapping into lessons learned from last year—to get into position for 2024.

34 SPONSORED GLOBAL LOGISTICS: KEY TRENDS & TAKEAWAYS The only certainty when it comes to global logistics is ongoing uncertainty. Agility, technology, and an appreciation for geopolitics are among the abilities essential for navigating the current environment.

2 Inbound Logistics • March 2024

A company shipping 100,000- year-old Arctic ice to chill cocktails in Dubai gets an icy reception from environmentalists

CONTENT PARTNERS 16 Load More Per Container to Cut Freight Costs Offered by ACL

18 Convergint Technologies Ensures Safe Shipping with EchoInsure+ Offered by Echo Global Logistics

INFOCUS 1 INFO SNACKS 12 NOTED 14 TAKEAWAYS 58 IN BRIEF

20 VIEWPOINT Preventing another supply chain Groundhog Day 22 SMART MOVES Paving the way for younger truck drivers 64 LAST MILE Beyond the AI hype

GOOD QUESTION What’s one supply chain misconception that needs to be cleared up now?

INSIGHT 4 CHECKING IN Celebrating women in supply chain 6 GOOD QUESTION What’s one supply chain misconception that needs to be cleared up now? 8 10 TIPS Securing your supply chain against cyber attacks

INFO 54 SUPPLY CHAIN INSIGHTS 56 PRODUCT SPOTLIGHT: AMRs AND AGVs 60 CALENDAR 62 RESOURCE CENTER

INPRACTICE

These AI projections will blow your mind.

10 READER PROFILE SALIM BENJELLOUN PRIORITIZES FAMILIES, FOOD AND PLANET

Knowing that every employee matters and that his company, Pompeian Inc.—a leading olive oil brand—is doing good for people and the planet is what guides Salim Benjelloun through even the most difficult days and challenges.

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

March 2024 • Inbound Logistics 3

CHECKINGIN Women’s History Month – Supply Chain Style

Vol. 44, No. 3 March 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

STAFF PUBLISHER Keith G. Biondo

publisher@inboundlogistics.com

T his month we recognize and celebrate the role of women in America and I am lucky enough to learn about the many women who are making great contributions in supply chain management as part of my job. When we started Inbound Logistics magazine 40 years ago, men primarily managed the transportation discipline. Today times are different and women play a large role in this sector, holding high-level positions, managing

EDITOR Felecia J. Stratton

editor@inboundlogistics.com

SENIOR EDITOR Katrina C. Arabe

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

DIRECTOR OF STRATEGIC CONTENT

CONTRIBUTING EDITORS Merrill Douglas • Karen M. Kroll • Rich Osborne CREATIVE DIRECTOR Jeof Vita jvita@inboundlogistics.com DESIGNERS Nicole Estep Arlene So DIGITAL DESIGN MANAGER Amy Palmisano

Keith Biondo, Publisher

complex networks, and overseeing large workforces. We’re proud to have spotlighted many women during the past four decades who are making history by driving supply chain excellence for their companies and customers. Here’s a glimpse at a few of them: “I wouldn’t call myself a feminist by any means, but we do have to work harder,” says Jessica Yurgaitis of Industrial Supply Company. “There has been a lot of progress for women in the work world, but not enough.” When starting out in procurement, Yurgaitis learned how supply and procurement excellence ensures the best customer relationship possible. She’s CEO now and a supply chain career path took her there. Anne Meyrose lives by this credo: “Ensuring the company’s logistics network moves the right product, to the right place, at the right time, bringing each brand’s vision to life.” Anne is now vice president of logistics and control tower with The Gap, but her career path reads like that of three people: she’s had roles ranging from senior director, transportation to transportation service operations manager to analyst, methods and programs to transport specialist, outbound transport, and store services. Her well-rounded experience clearly makes her a valuable asset for The Gap. Sherry Liu worked her way up from inventory planner to vice president international supply chain with CarParts.com. “After college my goal had been to become a diplomat and learn more languages—I speak Mandarin, Taiwanese, and English—and then explore the world.” She leveraged those talents and worked with new management to transform CarParts.com. “As a female executive, balancing work and home can be challenging,” Liu says. “I don’t have a great strategy, but once I’m home, I try to put my phone down and focus. Then once my kids are in bed, my third shift starts, when I call overseas vendors.” “I was probably one of the first women in trucking 26 years ago,” says Amy Davis. She worked her way up the chain and is now president of Cummins New Power. “Cummins took a chance on me years ago,” she says. “I don’t have a science or supply chain background.” These are just a few of the women making history this month—and every month—in supply chain.

apalmisano@inboundlogistics.com

PUBLICATION MANAGER Sonia Casiano

sonia@inboundlogistics.com

CIRCULATION DIRECTOR Carolyn Smolin

SALES OFFICES PUBLISHER: Keith Biondo

212-629-1560 • FAX: 212-629-1565 publisher@inboundlogistics.com WEST/MIDWEST/SOUTHWEST: Harold L. Leddy

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

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Inbound Logistics supports sustainable best practices. Our mission is rooted in helping companies match demand to supply, eliminating waste from the supply chain. This magazine is printed on paper sourced from fast growth renewable timber.

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4 Inbound Logistics • March 2024

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GOODQUESTION Readers Weigh In

☒ TECHNOLOGY WILL FIX EVERYTHING. Technology is not a panacea. Enterprise resource planning systems are coming into their third decade now, and we still see the same data-quality issues crop up. Investing What’s One Supply Chain Misconception That Needs to Be Cleared Up Now? Myth: Cost Reduction Reigns

in our people and processes is the most efficient and effective way to build resilient supply chains—ones that can utilize everything the artificial intelligence revolution has to offer.

The supply chain should reduce cost. It can, but more importantly the supply chain should help reduce time—the amount of time that anything in stock is ordered, pulled from inventory, and delivered to the end consumer.

–Steven Hyman COO, Global Messenger and Logistics

–Jessica Windham CEO, Solving Work

The most important supply chain metric is cost savings. Many supply chain professionals believe doing more with less and finding “leverage” is the key to success. Operating efficiently, not the cheapest, is paramount to delivering value in the form of responsiveness, sustainability, and innovation. You cannot thrive internally and expect your customers to feel the value. –Mark McEntire CEO, Princeton TMX

☒ THE SUPPLY CHAIN SECTOR WILL CONTINUE TO BE MALE DOMINATED. More women are entering the supply chain workforce than ever before. Our 2023 Voice of the American Workforce survey shows 42% of supply chain respondents are female, and Gartner’s Women in the Supply Chain data finds 25% of supply chain C-suite roles are now filled by women— statistics not seen a decade ago. –Kim Vindrine Sales Excellence Manager Employbridge

☒ TEMPERATURE- CONTROLLED ENVIRONMENTS ARE ONLY SUITED to protect from heat or freezing. There is additional value; they reduce humidity while food products are stored or handled. Humidity can impact food quality and the shipping and inner carton stability. –Frank Hurst Executive Vice President – LTL Echo Global Logistics ☒ TRANSPORTATION CAUSES MAJOR DELAYS (i.e. OTIF penalties) in manufacturing. This is overblown. More than 80% of the time, the reason something is late to a customer destination is because it didn’t leave the source distribution site on time. –Keith Moore CEO, AutoScheduler.AI

☒ NEGOTIATIONS ARE A ZERO SUM GAME. Conversations with suppliers, partners, and even competitors should center around opportunities for shared value creation, instead of an ultimately shortsighted “I win, you lose” approach. As Simon Sinek says, it’s an infinite game. Adopting binary mindsets will ultimately leave us shorthanded. –Jason Hehman Vertical Lead for Industry 4.0, TXI ☒ SUPPLY CHAINS ARE LINEAR. Supply chains are nonlinear fluid processes that operate continuously. They are dynamic and consist of multiple chains that comprise a supply chain ecosystem. They are interconnected and living processes that do not start and end.

☒ SUPPLY CHAINS ARE NECESSARILY BECOMING MORE RESILIENT by shifting production out of China toward

countries that have better relations with the United States and its allies. Shipping lanes between China and the U.S. West Coast are comparatively secure when compared to routes that require ships to pass through the Suez or Panama Canals regardless of the disposition of the country of origin. –Robert Reavis Vice President, ButcherJoseph & Co.

6 Inbound Logistics • March 2024

GOODQUESTION

Understanding this will make you more adaptable to change. –Stephen Dombroski Director of Consumer Markets, QAD

Fallacy: Humans Will Be Supplanted

☒ BLAMING THE SUPPLY CHAIN for products not being

People will become less important with increasing automation and AI in the supply chain. While technology boosts efficiency, it cannot replace the unique human skills necessary for collaboration and strategic decision- making. An optimal supply chain requires a balance of both technology and human expertise. –Mike Trudeau Executive Vice President, Business Development, Montway Auto Transport Digitalization replaces human expertise. While technology does enhance decision-making, the human touch remains crucial for tackling disruptions and maintaining partnerships. Digitalization doesn’t negate the need for human skills; it complements them. –Fernando Correa CEO/Co-Founder, Cargobot

delivered on time and timelines being delayed. This is a cop out. It’s easier to place blame instead of understanding the requirements for the supply chain to flow correctly. –Chip Barth Managing Director, Global Supply Chain Practice, TBM Consulting ☒ YOU NEED TO BE AN EXPERT IN SUPPLY CHAIN. In a recent piece of research every interview started with “I’m not an expert on supply chain,” yet what followed was a rich discussion that often ran over time. Start a conversation with a team you don’t normally talk with.

☒ DISRUPTION IS AN ABERRATION. It’s a state of mind. Agility isn’t something that happens just once or twice a year or when a crisis hits. It’s an ongoing capability and it’s business critical. The era of “this is how we do things, no need to adjust” doesn’t exist anymore. –Tony Pelli Practice Director, Supply Chain Security & Resilience, BSI ☒ COMPANIES’ SUPPLY CHAIN CHALLENGES ARE UNIQUE. We all face similar issues. By connecting and discussing our shared challenges, we open the door to collaborative problem-solving and can create shared value. Partnership and transparency are essential to building a smarter, more sustainable supply network. –Dan Ahrens Director, Customer Solutions, CHEP

may tell us we aren’t experiencing disruption based on measures of stock, we also need to look at logistics indicators like the Baltic Dry Index and the Shanghai Containerized Freight Index (SCFI). Also, container imports and exports, and purchase, producer, and manufacturing indices. –Gordon Donovan Global Vice President Research SAP Procurement and Supply ☒ THE SHORTAGE OF TRUCK DRIVERS IS A SYSTEMIC ISSUE. This is just not the case. What we have seen are temporary fluctuations in capacity based on the demand for shipped goods vs. the supply of trucks available, often due to drivers leaving or entering based on the strength of the market. –Eric Masotti President of Logistics Trailer Bridge

–Anthony Monaghan Transportation Leader, WTW

☒ A “LIGHTS OUT” SUPPLY CHAIN. The value technology can bring is not to eliminate humans but elevate them, by automating the obvious and minimizing the mundane, so people are freed to work on higher- order, complex problems requiring contextual understanding and judgment.

–Polly Mitchell-Guthrie VP, Industry Outreach and Thought Leadership, Kinaxis

☒ PRESSING PAUSE ON INNOVATION and continuous

improvement in a down market. This can actually be an opportune time to take action for the future. A company’s budget may not currently support launching new sites or fully automating an existing site, but there are lower- cost options to remove bottlenecks and improve operational efficiencies. –Bryan Perkins Senior Vice President, Engineering Tompkins Solutions ☒ SUPPLY CHAIN DISRUPTION CAN BE MEASURED just by looking at the amount of stock in the supply chain. While volatility matrices

Have a great answer to a good question? Be sure to participate next month. We want to know: How would you complete this sentence? Supply chain professionals would make great ________.

We’ll publish some answers. Tell us at: www.inboundlogistics.com/good-question

March 2024 • Inbound Logistics 7

10 TIPS

While cyber attacks are becoming more common, more precautions are available today to protect your supply chain. Ensuring the best outcome against cyber attacks breaks down into three basic areas: avoidance, reaction, and preparation. Securing Your Supply Chain Against Cyber Attack

1 TAKE PROACTIVE MOVES

problem. Transitioning to live data saves an enormous amount of time and minimizes the impact on the customer. Keep in mind that advanced set up reduces transition downtime and helps maintain continuous operations. It is important to establish two-way connectivity between the systems so the backup system is up to date and new data can easily be restored to the original platform. Remember to have a data mirror in place prior to an event; this serves as insurance. 9 IMPLEMENT A TRAINING PROGRAM. With a small investment in training, employees can quickly learn how to work in a new, unfamiliar environment—which saves time and money in the long run. Conduct training for entire teams while applying a more frequent and comprehensive approach for key users.

TO PREVENT CYBER ATTACKS. Move away from proprietary hardware and systems and shift to cloud services from established providers, such as Amazon Web Services and Google. These companies treat security as a main component of their core business, which you can leverage.

2 SHIELD YOUR SYSTEM, PROTECT YOUR DATA. Transition to a browser-based user interface using APIs or CGI scripts to transfer data to and from the servers via firewalls. Browser-based systems are far more secure— they were initially developed by the U.S. Military to ensure data security and remote access speed. 3 IMPLEMENT TIGHTER CONTROLS ON LOGINS. Requiring strong, frequently updated password controls is essential, as is controlling who can create user logins. Monitoring this helps avoid human error that can leave your system vulnerable. 4 WORK THROUGH OTHER PLATFORMS. Swiftly work through alternative software platforms while you identify the main system issues. This helps reduce the severity of the attack because it enables business continuity with minor impact on your customers. Our experience has shown us that customers

who are open to working on alternative platforms significantly minimize their cargo flow disruption. 5 LEVERAGE AI DATA INGESTION TOOLS. Use these tools to conduct major data input. This can replace or substitute for EDI connections in the short term by facilitating the process of importing large, assorted data files from multiple sources into a single, cloud-based MAIN SYSTEM. Ensure the main system is fully backed up and operational and free of viruses. Returning to the main system prematurely can create additional problems storage medium. 6 SECURE THE

that negatively impact both customers and employees. 7 VET PLATFORMS BEFORE AN ATTACK. When looking for the right platform, ask key questions, such as: How much of the core business can be supported on this platform? Do you need more than one? Does this align with my business objectives? 8 INTEGRATE AN EMERGENCY PLATFORM INTO YOUR MAIN SYSTEM. The fail-over platform, which is a standby system available if the main system fails, should run as a mirror of the live environment. Cyber attacks often result in losing access to current data, which is a huge

10 CONDUCT OCCASIONAL FIRE DRILLS.

Practicing how to handle a challenge that requires a calm, swift response ensures the team is prepared during a real-world crisis. There is a reason all children must practice fire drills at school. This is to prevent panic and ensure everyone knows how to quickly transition to a safe environment. The same is true with core systems as well.

SOURCE: BRYN HEIMBECK, CO-FOUNDER AND PRESIDENT, TRADE TECH

8 Inbound Logistics • March 2024

READERPROFILE

as told to Karen Kroll

Oil’s Well That Ends Well

RESPONSIBILITIES: Overseeing supply chain operations, production, maintenance, and capital expenditures. EXPERIENCE: Vice president, operations; operations manager; and engineering manager, all with Pompeian; continuous improvement intern with Colgate-Palmolive. EDUCATION: Université de Technologie de Compiégne (UTC); mechanical engineering, industrial reliability, and quality. SALIM BENJELLOUN is vice president of operations at Pompeian Inc., a leading brand of olive oil, vinegar, and cooking wine. Founded in Baltimore in 1906, the company produced America’s first national brand of imported extra virgin olive oil.

I was born and raised in Morocco, and then graduated from college in France. I came to the United States and joined Pompeian in September 2013 when I was 23 years old. I came to the United States thinking I spoke decent English, but I really didn’t. I started in the maintenance department on a team of experienced mechanics, where I had no experience and a language barrier. The company trusted me, but gaining the trust of the department was more of a challenge. To gain their trust, I focused on consistent, hard work combined with pride and love. Every day I worked longer hours, as I wasn’t yet thinking about having kids or buying a house. I did this because I wholeheartedly agreed with Pompeian’s values. We offer a good, healthful product and are doing good for farmers, consumers, our employees, and the planet.

meaningful and continuously do good for people. Food is one. People will always eat and drink, and value can always be added there. It’s also easy to become passionate about the food industry, especially olive oil because it has a long history and provides many health benefits. In many countries, it’s on the table like salt and pepper. Additionally, manufacturing skills can transfer from one company to another. I think of engineering as learning how to solve things. That’s the part I enjoy, as well as systems and process changes. These are also what drew me to supply chain. There have been a lot of positive changes and growth across Pompeian. The company is family-oriented and culture-driven. We care about families, food and the planet, and I’m proud to be a part of it. n

In this company, every employee matters. Knowing all of this means I can go through challenges and difficult days with pride. When I return home, I still smile and feel the same satisfaction as when I started. I was lucky that I was given a challenge and I embraced it. Before Pompeian, I held an internship with Colgate in France, where I was able to see a large-scale production operation. Colgate also inspired me, when I was choosing my career path, to look at what I like to do and what type of businesses will remain “I think of engineering as learning how to solve things. That’s what drew me to supply chain.”

10 Inbound Logistics • March 2024

READERPROFILE

Salim Benjelloun Answers the Big Questions 1 What are one or two things you wished you’d known before starting your current role? Without hesitation, it’s English. Speaking the language is an important requirement when coming to an English- speaking country.

the wall, and then come back. You have to measure the risk.’ So as a teen, I could sleep at a friend’s house even on school nights, but it was on me to make it to school the next day. This helped me to learn not to be scared of making my own decisions. At the same time, making decisions can be exhausting. I would wear the same pajamas and socks each day so I didn’t have to think about choosing them. I then kept my thoughts for bigger decisions. 3 What motivates you to get you out of bed every morning? The people I work with. Before I think about my job, I think about who I will be working with during my day. What also gets me out of bed is the anticipation of uncovering new possibilities, and the excitement of turning potential into reality and embracing the day’s untapped opportunities. Lastly, gratitude for the gift of a new day and the well- being to experience it.

Another thing is the American mentality about work and how much we focus on it. In Europe and Morocco, there’s a different mindset and balance. It wasn’t too difficult to adjust to the differences, but I would have been a little more efficient if I knew the American culture coming in. Yet, there is also the beauty of discovering it. 2 What kind of student and teen were you during your high school years? One thing that made me who I am today when it comes to approaching challenges is that I was lucky to have parents that would not say no to anything. It doesn’t mean they always approved of what I was doing, but they left the responsibility to me. My dad would say, ‘You’re going to keep going, hit

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March 2024 • Inbound Logistics 11

ASSOCIATEDLOGISTICS.COM 1 • 877 • SHIP • ALG

INFO@ASSOCIATEDLOGISTICS.COM

NOTED [ IN FOCUS ]

The Supply Chain in Brief

> GREEN SEEDS

> SEALED DEALS

• Kilcoy Global Foods deployed the Nexterus transportation management system to help manage freight and improve freight spend reporting. Kilcoy provides high-quality food products to independent restaurants and national chains. • Ice company Arctic Glacier has improved distribution network efficiency, fleet performance, and the customer experience by using Descartes’ strategic route planning solution to optimize ice distribution from 100+ facilities and 1,000 vehicles to 75,000 customer locations across the United States and Canada. • flaconi, a German beauty and perfume e-retailer, selected GreyOrange’s GreyMatter fulfillment orchestration platform in combination with a fleet of 70 GreyOrange Ranger Assist robots to attain peak season flexibility in the warehouse. • As part of a new multi-year agreement with RightHand Robotics, Staples will deploy and install the company’s RightPick item- handling system to automate operations for higher service levels and next-day delivery to 98% of the United States.

n Estes partnered with Watershed, an enterprise sustainability platform, to assess and set benchmarks against its sustainability program. The initial phase will be to complete Estes’ first carbon footprint, which it will use as a baseline to analyze its emissions data and identify emissions hot spots. n Wen-Parker Logistics has entered a partnership with 4ocean to help remove up to 20,000 pounds of plastic and trash from the oceans, rivers, and coastlines.

> UP THE CHAIN

J.B. Hunt Transport Services appointed Shelley Simpson as chief executive officer and president, and nominated her for election to the company’s board of directors. Simpson has served as the company’s president since August 2022.

Robert Kossick will join A.N. Deringer’s Trade Advisory Group as a senior trade advisor. Kossick is a licensed customs broker, an attorney whose practice experience has centered on customs and trade issues, and a member of the Washington District Export Council.

12 Inbound Logistics • March 2024

NOTED

> M&A

> RECOGNITION

• The Hyster® H40-70A forklift series is a winner of the 2023 GOOD DESIGN® Award. The H40- 70A models, which are available with 4,000-to-7,000-pound lift capacities, are designed around a singular base configuration derived

n The Kenan Advantage Group (KAG) acquired Northern Dry Bulk , a Clare, Michigan-based company specializing in the transportation and storage of plastic resins in the United States and Canada. n Armada Sunset Holdings acquired ATEC Systems and its affiliates. ATEC will operate as a division of Armada Supply Chain Solutions, the company's food and restaurant logistics operation. n Cheetah Net Supply Chain Service completed its acquisition of Edward Transit Express Group, a California-based global inbound non-vessel-operating common carrier providing ocean and air transportation services. n Accenture will acquire Insight Sourcing, a strategic sourcing and procurement services provider. n Cleveland-based KODIS Holdings , a collection of niche logistics companies, completed the acquisition of Syracuse- based Empire Freight Logistics . n RD Last Mile Holdings, a final-mile delivery company headquartered in Omaha, acquired the assets of Sonic Systems, a provider of customized and final-mile logistics services in Florida.

from direct feedback from operators, managers, technicians, safety coordinators and other professionals. From there, operations can tailor additional features, creating a forklift based on their specific application. • The Allen Lund Company was designated a 2023 Warehouse Delivered Carrier of the Year for PepsiCo's Central and North Divisions. • Kaleris was named the overall leader in the Yard Management System Competitive Ranking by technology intelligence expert ABI Research. The Kaleris yard management system was the highest-performing solution across multiple categories, earning both Top Innovator and Top Implementor rankings, which culminated in the overall leader ranking. • AutoScheduler.AI won the BG Strategic Advisors Supply Chain “Shark Tank” competition, taking home both the Judge’s Choice and the People’s Choice Awards. Awards included $5,000 provided by former Shark Tank winner Venti and $10,000 in services by Benesch. • IntelliShift was selected as winner of the IoT Analytics Company of the Year for the second year in a row in the 8th annual IoT Breakthrough Awards program conducted by IoT Breakthrough, a market intelligence organization that recognizes the top companies, technologies and products in the global Internet of Things market. • Schneider National received the National Safety Council’s Green Cross for Safety Advocate Award for the company’s work piloting technology to combat

> MILESTONE

n CB Customs Broker, a Lufthansa

impaired driving. The NSC’s safety awards recognize individuals and organizations for their contributions to the advancement of safety in the workplace, on the road and in homes and communities.

Cargo subsidiary, customs-cleared 50 million shipments in just three years. The company specializes in all aspects of customs and customs clearance for import and export shipments by air, sea, rail or road.

March 2024 • Inbound Logistics 13

TAKEAWAYS Shaping the Future of the Global Supply Chain

IS SAME-DAY DELIVERY WORTH THE HYPE? While implementing same-day delivery presents challenges, many companies say that the benefits are worth it. A majority of companies (80%) say they increased revenue after implementing same-day delivery, according to new research from Roadie, a UPS Company that offers a logistics management delivery platform. The research, which provides an overview of the challenges and benefits associated with implementing same-day delivery services, finds that nearly one-third of retailers report a revenue increase of more than 10%. Executives also cite benefits including higher customer satisfaction (80%), and an increase in sales (70%) and retention rates (66%). Additional research highlights include: • Most companies (63%) offering same-day delivery have done so for three years or more. • 68% report that same-day delivery ROI consistently increased each year. • Companies say that growing ROI unlocks insights that help them make decisions about: ▲ Product and service offerings (65%) ▲ Expansion of same-day delivery in new regions (59%) ▲ Warehouse space (54%) ▲ Distribution facility locations (51%) ▲ Logistics investments (45%) ▲ Labor (37%) One caveat: The transition to same-day delivery introduces higher operational costs for most companies surveyed, who report the need for innovative pricing strategies to mitigate these expenses. Same-Day Synergy What benefits do companies experience from offering same-day delivery options to consumers?

READERS REACT: NEW CYBERSECURITY EXECUTIVE ORDER To address growing concern over cyber threats, President Biden signed an executive order amending regulations designed to safeguard U.S. vessels, harbors, ports, and waterfront facilities. The order aims to further protect these assets against cyber attacks and other threats. Here’s what Inbound Logistics readers say about this new action:

“The new executive order will give the U.S.

Coast Guard greater authority to enforce cybersecurity requirements. Securing the maritime sector is an essential part of building resilient supply chains.”

—Abe Eshkenazi, CEO, Association for Supply Chain Management (ASCM)

“This is a critical step forward in protecting U.S. ports. We also have to pay attention to common wireless vulnerabilities. Attacks leveraging wi-fi, Bluetooth, and IoT protocols may be used to access authorized infrastructure including IT and OT systems.” —Dr. Brett Walkenhorst, CTO, Bastille

“This is a crucial advancement. Cyberattacks serve as stark reminders of the cascading impacts on America’s shipping ports and the U.S. economy. Employing due diligence and verifying partnerships are also key to

mitigating external risks.” —Cole Garson, COO, Remcoda

Source: Roadie

14 Inbound Logistics • March 2024

TAKEAWAYS

and expect supply chains to continue moving out of China, according to the newly released Agility Emerging Markets Logistics Index . The Index ranks countries for overall competitiveness based on their logistics strengths, business climates, and digital readiness—factors that make them attractive to third-party logistics providers, freight forwarders, air and ocean carriers, distributors, and investors. Here are some key findings from the 2024 Index : • India, Europe, and North America rank ahead of China as destinations executives expect to move production to in 2024 and onwards. • A large percentage of executives see increased risk/ decreased rewards in emerging markets. • Many see India growing in importance as a producer and market, but cite inadequate infrastructure and corruption as the biggest obstacles there. • Many predict a surge in Africa investment. • 66% say climate change is something they’re planning for, or is already affecting their businesses.

SUPPLY CHAINS SEARCH FOR NEW SOURCES All eyes are on emerging markets as logistics and supply chain professionals look for the next opportunity to combat an uncertain global economic climate. These executives also remain wary of recession, express concerns over elevated costs,

asi_halfpgIL_0324_final_• 2/19/24 9:44 AM Page 1

GLOBAL LOGISTICS SOLUTIONS

International Transportation Services ▪ PORT-TO-DOOR INTERNATIONAL SHIPMENTS ▪ CUSTOMS BROKERAGE ▪ FREIGHT FORWARDER, NVOCC ▪ AIR FREIGHT SERVICES ▪ IMPORTER SECURITYFILING SERVICES(10+2) ▪ SHIPPERS RISK COVERAGE SERVICES

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March 2024 • Inbound Logistics 15

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ABOVE& BEYOND Customer Service Case Studies

Security solutions firm Convergint found peace of mind with Echo Global Logistics’ supplemental cargo insurance offering EchoInsure+. Through an expedited claims process with faster resolution, Echo made shipping Convergint’s high-value freight stress-free. Convergint Technologies Ensures Safe Shipping with EchoInsure +

C onvergint Technologies, a banking security technology organization, ships a great deal of high-value commodities to top-tier banking companies around the country. From ATMs,

Fortunately, Convergint had included EchoInsure + on its damaged ATM shipment. Convergint’s client was able to receive reimbursement for 75% of the value of the product, and the parts from the machines were able to be salvaged. The turnaround for filing and resolving the claim was swift, and the time lost and the damage dealt was resolved much more easily than if the shipment had not been insured. With EchoInsure + , the

safes, conduits, and an array of security instruments, keeping these important commodities in prime condition is essential to Convergint’s business. THE CHALLENGE As a high-value shipper which operates largely in the LTL space, Convergint keeps a close eye on key performance indicators such as cost per commodity, on-time-in-full delivery performance per carrier, and claims ratios. For one such high-value shipment, Convergint needed to move a large quantity of ATMs. These banking machines needed to be secured properly in order to maintain proper functioning upon arrival. To prepare for this, the devices had been equipped with wheels to move more smoothly between trailers and docks in the loading process. Despite explicit instructions from Echo, the ATMs were accidentally loaded onto faulty pallets by the carrier. As a result, the products could not be secured as required during transit. Upon arrival, the pallets had broken,

shipping and claims process is significantly easier, and in the event of lost or damaged goods, the client payout much more accurately retains the value of the product. Now, Convergint ships nearly every load with EchoInsure + , providing peace of mind when transporting their business’s valuable products. “We were thankful that we had included EchoInsure + on this particular shipment,” Dharamsi said. “It quickly allowed us to turn a major roadblock into a readily available solution. We’re able to continue to ship our high-value products worry-free with Echo’s help, and we’re grateful for the support of their innovative services and dedicated team.”

leaving the high-tech devices damaged and in need of significant repair. “It was almost a total loss,” said Raj Dharamsi, supply chain manager at Convergint. “The damage was significant, and we were worried our products would not be able to be salvaged.” THE SOLUTION In 2023, Echo Global Logistics, a leading third-party logistics provider of technology-enabled transportation and supply chain management services, introduced EchoInsure + , a means to add an extra layer of protection to LTL shipments. This shipping solution offers best-in-class coverage as a simple addition to loads booked through Echo and includes claims paid in as fast as 10 days, zero deductible up to $10,000, broader protection with fewer exclusions, and full-value coverage rather than limited carrier liability.

18 Inbound Logistics • March 2024

If not, they should be reading this.

We’ve got more great issues lined up for you, your vendors, and your entire team! Point them to bit.ly/ILDigital

ICC =inventory carrying costs

C =capital

T =taxes

I =insurance

W =warehouse costs

X =shrinkage

S =scrap

O =obsolescence costs

R =recovery

VIEWPOINT [ INSIGHT ]

by Eric R. Byer President and CEO, The Alliance for Chemical Distribution ebyer@acd-chem.com | 703-527-6223

Preventing Another Supply Chain Groundhog Day

Rising prices, long delays, and mounting backlogs are factors reminiscent of the 2020 shipping crisis. But businesses still experience some of the same challenges, which are, unfortunately, tracking well ahead of where we were during the pandemic. It’s imperative that we prevent another supply chain Groundhog Day. Ongoing tensions in the Red Sea and Gulf of Aden have severely

Following the historic profits made by carriers during the pandemic, Congress overwhelming passed the Ocean Shipping Reform Act, giving the FMC expanded oversight and power to regulate the ocean carrier community. However, carriers continue to do as they wish with little regard to the impact on businesses across the supply chain. If we want to avoid another supply chain crisis and get out of this endless time loop of shipping challenges, a number of actions must take place: 1. The FMC must remain vigilant in overseeing special permission requests and surcharges levied by ocean carriers. 2. The FMC has the authority to address unreasonable surcharges, and must hold these carriers accountable. 3. The FMC must proceed with the Maritime Transportation Data Initiative to improve data transparency and cargo movements. 4. Congress must conduct oversight to once again force carriers to be held accountable for their actions. We must not let the ocean carrier community use tensions in the Red Sea as an opportunity to financially benefit at the expense of the American supply chain, businesses, consumers, and ultimately, the U.S. economy. n

Our members have grown concerned by the lack of communication from carriers about the location of their containers and potential for delays. In a world of 24/7 global communications and GPS tracking, this is unacceptable. MORE THAN NECESSARY? ACD members have also seen an uptick in shipment surcharges. While we understand the interwoven nature of global shipping means these disruptions will impact ocean shipping, we fear that current pricing shifts go beyond what is necessary and place a disproportionate cost burden on shippers. Shippers are experiencing a significant increase in the spot rate market. More frustrating, carriers have invented new surcharge names, such as Emergency Freight Surcharges or Peak Season Surcharges, and placed them on shipments regardless of their destination and without clarifying how they determined these charges.

disrupted the economic transport of essential chemicals. Container ships are rerouted around South Africa’s Port of Good Hope because of pirates. The historic drought in the Panama Canal compounds these disruptions, making shippers anxious of what’s to come. I recently testified before the Federal Maritime Commission (FMC) to warn about the implications of rising shipping rates and delays should these challenges not be resolved. The Alliance for Chemical Distribution (ACD) relies heavily on chemical imports and our members are starting to experience the impacts of these shipping challenges. We recognize some increases in costs and transit times are justified and we want ocean carriers to ensure the safety of their employees, vessels, and cargo. However, they must also ensure their response does not damage the global marketplace.

20 Inbound Logistics • March 2024

The Port of Long Beach is investing $1.5 billion in rail infrastructure – more tracks, longer trains and greener locomotives. More cargo moving faster to market more efficiently as we work to become the world’s first zero-emissions port. On Track with Rail

SMARTMOVES [ INSIGHT ]

by Adam Putzer National Sales Director, CPC Logistics a.putzer@cpclogistics.com | 262-389-7971

Paving the Way for Younger Truck Drivers With a shortage of more than 60,000 truck drivers due in large part to an aging workforce, the idea of recruiting millennial and Generation Z workers into the profession is gaining traction.

host appreciation activities like cookouts and outings. And incentives for safe driving and additional training show your drivers that hard work pays off. Create clear paths for advancement. Many drivers in the early stages of their careers are motivated by the prospect of earning better opportunities down the road. While it is important to offer higher pay or more flexible schedules, companies must also establish a viable path from the truck to the office. Give drivers the chance to become trainers, team leads, dispatchers or members of operations and management teams. The best fleet leaders are often former drivers due to their firsthand experience behind the wheel. Support work-life balance. When it comes to factors influencing job satisfaction, drivers of all ages consider home time to be the most important. When possible, companies should create more regional and local jobs that allow drivers to be home every night. Also accommodate for those who desire part-time or flexible work. This can help combat the industry’s reputation for long hours that has kept younger generations away. Companies that can connect with young drivers—a largely untapped source of talent—will be well-positioned for success in the face of the ongoing driver shortage. n

Offer CDL tuition reimbursement. Financial limitations can be an obstacle when beginning a career. Paying all or part of the cost to attend CDL school is another way to entice younger drivers to join your company. Many organizations that provide tuition reimbursement pay drivers in increments over time, which can also boost retention. Begin an employee referral program. According to a recent American Transportation Research Institute study, 73% of surveyed drivers between the ages of 18 and 25 were introduced to trucking by an adult relative. Giving referral bonuses to current employees can inspire them to not only advocate for trucking as a career choice, but also promote your company’s open jobs to the younger drivers they know. Often seen as a perk, these bonuses can help you retain drivers after you hire them, too. Provide recognition and incentives. Younger employees want more frequent recognition compared to older generations. Acknowledge your drivers’ outstanding work with Driver of the Month and Driver of the Year awards, tout their accomplishments in company newsletters and social media pages, and

Here are some actions companies can take to pave the way for the next generation of truck drivers. Start a warehouse-to-driver transition program. Because federal regulations prevent people younger than 21 from obtaining a commercial driver’s license (CDL) that would allow them to drive trucks across state lines, many high school graduates who may have considered a trucking career pursue jobs in other fields. Companies can break down this barrier and establish a hiring pipeline by creating transition programs that give young people the opportunity to work in a warehouse before attending truck driving school and eventually becoming a professional driver. Implement a thorough onboarding process. Truck driving schools teach the skills and knowledge needed to pass the CDL exam. They do not provide all the tools drivers need to succeed at the companies that hire them. Ensure employees have consistent and meaningful contact with managers and supervisors. Consider assigning new drivers to an experienced mentor or having them spend time with a partner who can show them the ropes.

22 Inbound Logistics • March 2024

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