LEADING U.S. PORTS COLD CHAIN SOLUTIONS
Transforming the Manufacturing Supply Chain REWIRED AND READY:
UNPACKING THE FUTURE OF RETAIL LOGISTICS PLUS
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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
“Biggest Battlefield Innovation in a Generation” Innovation
The U.S. Department of Defense plans to significantly increase the production and deployment of lower-cost drones, collaborating with the private sector to utilize o-the-shelf components for faster manufacturing. This initiative, showcased by 18 prototypes developed in just 18 months, aims to build a robust domestic supply of drones and parts. The Pentagon intends to conduct realistic battlefield training exercises and equip combat units with these devices. Ocials call these cheaper drones the “biggest battlefield innovation in a generation,” noting their significant impact on casualties in the Ukraine war.
How to NOT Get the Job You can mitigate post-interview stress by avoiding this list of the worst things to say in a job interview. “I hate my boss.” “I am interviewing elsewhere, so…” “I want your job.” “I don’t know.” “How much do you pay?” “I don’t have any questions.”
Apple’s Magnetic Move Apple struck a $500-million deal with MP Materials for U.S.-made rare earth magnets from its Fort Worth, Texas facility. The company also plans to develop a rare earth recycling line in Mountain Pass, California, for new magnet materials and advanced processing. This expands Apple’s use of recycled rare earths, which began in 2019 with the iPhone 11. Apple now exclusively uses recycled rare earth elements for magnets in its devices. IS YOUR PASSWORD “PASSWORD”? Many companies in the transportation and logistics sector still rely on weak and outdated passwords that pose a serious threat to systems managing everything from shipment tracking to fleet operations, finds a new study by NordPass.
NO DRIVER? NO PROBLEM!
A partnership between Uber, Nuro, and Lucid will develop a next-generation robotic taxi program, launching in a major U.S. city in 2026. The program will feature Lucid’s Gravity SUV and Nuro’s Level 4 autonomous driving system, Driver. Uber intends to deploy 20,000 or more autonomous Lucid vehicles and make multi-hundred-million-dollar investments in both companies.
Many passwords follow simple numeric patterns, use personal or brand-related names, or include basic phrases easy to guess or crack. The top 10 oenders: 1. 123456 2. vish 3. Cbd@ryder#2023 4. dell 5. 12345678 6. Natlada31526 7. fine 8. password 9. 111111 10. Ryder@2024
Among the U.S. freight businesses prioritizing sta retention, 56% plan to increase driver compensation and benefits, matched by another 56% planning to emphasize work-life balance, finds Tech.co’s 2025 Logistic Report. These states lead the way for increased truck driver pay and benefits, and work-life balance (by how many businesses plan to do so):
THE ROAD TO RETENTION
1. Texas: 14% 2. Florida: 8% 3. Tennessee: 5% 4. Georgia: 5%
August 2025 • Inbound Logistics 1
CONTENTS AUGUST 2025 | VOL. 45 | NO. 8
INFOCUS 1 INFO SNACKS 12 NOTED
58
26 SUPPLY CHAIN RESET: 7 TRENDS REMAKING MANUFACTURING Through reshoring, retooling, and redefining resilience, manufacturers are embracing a new normal shaped by volatility, vision, and the drive to stay ahead.
14 TAKEAWAYS 58 SPOTLIGHT: Warehouse wearables 60 IN BRIEF 64 LAST MILE Supply chain gaming
INSIGHT 4 CHECKING IN Self-healing inventory? 6 GOOD QUESTION What supply chain metrics should companies pay close attention to during these uncertain times? 8 10 TIPS Selecting a 3PL 24 DISRUPTION MANAGEMENT Tari-ied of your supply chain? INFO 56 SUPPLY CHAIN INSIGHTS 62 CALENDAR 63 RESOURCE CENTER INPRACTICE 10 READER PROFILE: CORPORATE SWAG GOES GREEN Tara Milburn, the founder of Ethical Swag, shares her journey from corporate executive to purpose-driven entrepreneur, revealing how a desire to align business with values led her to reinvent the promotional products industry.
FEATURES 32 BEYOND THE SHELF: UNPACKING THE FUTURE OF RETAIL LOGISTICS Five key advances—from AI to smart mailboxes—are helping retailers adapt to a complex, demanding, and evolving market. 38 SPONSORED LEADING U.S. PORTS These major U.S. gateways increase operational e ciency and continue to make infrastructure updates to support increased cargo demands. 44 SPONSORED KEEP IT COOL: PROVIDERS ROLL OUT HIGH-VELOCITY COLD CHAIN SOLUTIONS Increasingly dynamic and strategic, the global cold chain demands higher degrees of precision. Here are partners who can roll with complexity, ensure compliance, and deliver with speed and accuracy.
CONTENT PARTNERS 16 How to Stop the Ugly Parcel Problem Before It Stops You Oered by Engineering Innovation 18 The NMFC Overhaul: How Shippers Can Adjust to Updates Oered by SMC 3 20 Preparing for Freight Classication Changes: Initial Steps and Long-Term Strategies Oered by KDL 22 Syfan Delivers With Technology, Customer Service, and Communication Oered by Syfan Logistics
Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas, a Xometry company, 6116 Executive Blvd, Suite 800, North Bethesda, MD 20852. Periodicals postage paid at North Bethesda, MD, and additional mailing o ces. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. Postmaster send address changes to: Inbound Logistics, P.O. Box 1167, Lowell, MA 01853-9900
2 Inbound Logistics • August 2025
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Vol. 45, No. 8 August 2025 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
Self-Healing Inventory?
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
S elf-healing inventory is a phrase that is being used more and more these days. It’s a take-off on the concept of a self-healing supply chain, where inventory comes alive and knows where it has to be without you always lending a guiding hand. Inbound Logistics promotes the enterprise concepts that enable you to efciently and tightly match your inbound supplier ow and static inventory to your demand signals. The next iteration of that business
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
Tom Gresham Karen M. Kroll Gary Wollenhaupt
CONTRIBUTING EDITORS
Keith Biondo, Publisher
philosophy is an inventory management strategy that autonomously detects where your inventory needs to be and where your inventory should be to match current and future demand. Amazingly, this is mostly accomplished without people quarterbacking the process. So when you experience inventory “injuries” your self-healing inventory system slaps on some antiseptic and a band-aid to heal the wound without you even knowing about it (unless you want to). A self-healing inventory system proactively identies potential issues before they escalate, rather than simply reacting to problems such as stockouts. It achieves this by leveraging real-time data, advanced analytics, and articial intelligence/machine learning to anticipate disruptions. This involves continuously monitoring factors such as previous inventory data, demand patterns, supplier issues, shipping delays, weather interruptions and warehouse friction. It also anticipates potential issues through the power of real-time data, advanced analytics, and AI/ML not only to resolve upcoming issues should they arise, but also to predict demand even before it materializes. Here are some of the decisions a self-healing inventory system can make: • Increase supply orders to match a demand spike. • Switch to your alternate suppliers should one be unable to ll your orders. • Speed up or slow down your inbound orders based on need. • Move to expedited shipments to match inventory levels and business rules. • Rebalance your inventory between locations. • Learn from past events and the effectiveness of prior healing actions on a continuous feedback loop, making it smarter every day. Another benet is the impact on growth. The right orders in the right place before the right time at the right price—at the lowest possible inventory investment cost—amplify customer satisfaction while focusing on efciency. This approach is very effective in fast-moving inventory environments, understandably making companies such as Walmart and Cardinal Health take the lead in a self-healing approach to supply chain. Cardinal Health? Of course. It is a self-healing operation, after all.
Jeof Vita jvita@inboundlogistics.com
CREATIVE DIRECTOR
DESIGNERS Arlene So
DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR
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SALES STAFF PUBLISHER: Keith Biondo
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4 Inbound Logistics • August 2025
GOODQUESTION Readers Weigh In
What Supply Chain Metrics Should Companies Watch in Uncertain Times?
HOW MANY TOUCHES AN ORDER HAS. How many resets and changes. How many times we
Focus on OTIF
OTIF (on time in full) is one of the most telling metrics to watch in today’s ever-changing supply chain landscape. It measures a supplier’s ability to deliver the correct products, in the right quantities, within the agreed time frame. When OTIF performance starts to slip, it’s often an early warning sign that can quickly ripple into stockouts, delayed shipments, and frustrated customers. –Hagen Heubach Chief Marketing Ocer, Supply Chain Management, SAP Prioritize OTIF , inventory turns, and cost to serve. OTIF ensures customer satisfaction through timely, accurate orders. Accelerating inventory turnover reduces overstock and costs. Utilizing AI agents enables companies to quickly identify risks and opportunities to prevent disruptions, increase eciency, and minimize cost to serve. –Ann Marie Jonkman Vice President, Industry Strategies, Blue Yonder
say “uncertain times” (just kidding on this one). Our supply chains are becoming very complicated with IT and automation in an eort to cut cost and improve quality. But the top two show me that we are experiencing more loss than gain on many shipments. –Danny Schnautz President, Clark Freight Lines PARTNER CONNECTIVITY METRICS. How quickly can you onboard new suppliers? How fast do you process inbound data from partners? Companies that can rapidly establish new supplier relationships and automate external data exchange gain supply chain agility. –Deepak Singh Chief Innovation Ocer, Adeptia COST OF GOODS SOLD (COGS) for your potential tari rates based on where finished goods or raw materials are sourced. Implement an evergreen risk assessment and contingency planning motion to establish alternative sourcing strategies where you have the greatest exposure. –Mike Gross CTO, TrueCommerce highest-demand items. Segment items based on tari exposure level and VOLUME CHANGES. This shows immediate visibility into significant shifts that indicate broader market movements. Days without movement: Identifies stale inventory quickly, which
CHANGES TO WAREHOUSE CAPACITY AND COSTS , cycle time,
ties up capital and occupies valuable warehouse space. Inventory turnover ratio: Declining turnover rates are an early warning signaling deeper issues. –Amy Dean VP Operations, SC Codeworks FALSE POSITIVES. Too many irrelevant trade compliance alerts waste time and can lead to compliance risk by missing real sanctioned-party hits. –Brian Hodgson General Manager, Trade Compliance, Descartes Systems Group SUPPLIER PERFORMANCE/ ADHERENCE . The goal is to balance stock positions while protecting against stockouts, free up as much working capital as possible, serve the customer, and monitor performance across the supply chain. –David Schutzbank Managing Director, FTI Consulting
forecast accuracy, and transportation costs. In uncertain times, these metrics help balance supply with demand, reduce excess stock, and maintain service levels. Real-time insights from these KPIs enable agile decision- making, cost control, and resilience across the supply chain. –Arthur Axelrad Co-Founder & CEO, Dispatch Science SUPPLIER LEAD TIME VARIABILITY matters more than average lead time. Knowing how much timing swings tells you where the real risk is—not just what’s “typical.”
–Rodney Manzo Senior Director, Global Operations, Sage
6 Inbound Logistics • August 2025
GOODQUESTION
SUPPLY CHAIN AGILITY INDEX (SCAI) quantifies how “pivot-ready” a
Projections On Point
supply chain is to rapidly adapt to unexpected disruptions—not in theory, but in practice. Index metrics deliver a broader, comparative view of performance and trends. Most companies still optimize cost, not flexibility. Agility is the new competitive edge.
Forecasting accuracy remains foundational. The tighter the forecast, the fewer surprises across warehousing, stang, and transportation. –Dennis Moon COO, Roadie More specifically demand forecast , because it has the most significant impact on operational readiness. It influences nearly every other aspect of operations—inventory levels, production planning, purchasing, and customer fulfillment. Better forecasting metrics, based on current data and trends, help the supply chain react quicker and avoid costly risks. –Tony Oakes Training Manager, TA Services Smart teams monitor forecast accuracy (85%+) , inventory turns (8–10x/year), supplier on-time delivery (95%+), lead time variability (>20%), backorder rates (>2%), and slow purchase order (PO) acknowledgments to spot risk early. Fill rates below 98% hurt customer trust. These signals highlight gaps in planning, sourcing, or execution. –Adam Beckerman Manufacturing and Distribution Leader, Aprio
–Chris Doersen Executive Principal Client Delivery, JBF Consulting
TWO TRANSPORTATION METRICS are key to combating economic fluctuation and navigating shifting consumer behavior. The first is freight cost per unit/mile/shipment. The second is on time delivery/on time in full (OTD/OTIF), which reflects a transportation network’s reliability and pace. –Skylar Greer Director, Account Solutions, Kenco TIME-TO-VALUE is the metric I keep coming back to. The ability to turn a decision into a measurable result—quickly—is what sets resilient operations apart. Whether it’s a new technology, process change, or delivery model, it’s not just about moving fast. You need to see outcomes fast. –Karli Sage Sr. Director, Emerging Technology, Southern Glazer’s Wine & Spirits KEY RISK INDICATORS (KRI S ) related to risks such as subcontractor financial health, geopolitical risks, and extreme weather events. Focusing on adapting technologies that continuously track KRIs, combined with traditional key performance indicators, is what creates supply chain resilience. –David Weeks Supply Chain Industry Practice Lead, Moody’s DAYS SALES OUTSTANDING (DSO) is the metric to watch. In a tight-margin market, cash flow is everything—and DSO tells you how
PRIORITIZE RESOLUTION TIME over response time. A quick reply doesn't
quickly you’re actually getting paid. A rising DSO signals delayed cash inflows, which can choke operations. Monitoring and improving DSO helps supply chain companies stay liquid, stable, and ready for what’s next.
guarantee a fix, what matters is how fast issues are fully resolved. Focusing on resolution speed ensures operations stay on track, even when disruptions require multiple steps or expert intervention. –Ken Feinstein VP, MIDCOM Data Technologies
–Bharath Krishnamoorthy Co-Founder and CEO, Denim
KEY PERFORMANCE INDICATORS LIKE $/LB, $/CASE, AND $/MILE are our north star for tracking cost, eciency, and value. When these KPIs shift, it’s a signal to dig deeper—whether due to sourcing changes, order size, or transport costs. Anchor to your KPIs— beware of drifting. –Chris Tod President and COO, NT Logistics LANDED COST PER UNIT. It reflects the full impact of taris, duties, shipping, and fulfillment changes. Tracking it closely helps brands make smarter decisions about sourcing, pricing, and margin protection. –Thomas Taggart Head of Global Trade, Passport
Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question
August 2025 • Inbound Logistics 7
10 TIPS
The supply chain landscape is rapidly evolving, making the selection of a 3PL partner more critical than ever. Here’s how to make an informed and strategic decision. Selecting a 3PL
1 ALIGN INTERNAL REQUIREMENTS
8 BE CLEAR AND CONCISE WITH RFP AND RFI DATA. During the request for proposal/request for information stage, provide as much past data as possible. Logistics relies on physical and data flows so map out the physical environment and flows and the virtual environment and flows to give the 3PL a complete understanding of your business. Set the outcomes and expectations upfront for the engagement together with anticipated key performance indicatorss. Removing all ambiguity early leads to a greater chance of success. 9 REQUEST CUSTOMER REFERENCES. Nothing beats concrete feedback from customers on the pros and cons of your shortlisted 3PLs. Conduct phone validations and interviews whenever possible. Consider sending a short survey to get key feedback. This will help identify red flags with your final selected vendor.
WITH KEY SUPPLY CHAIN PARTNERS. As logistics outsourcing requirements are increasingly being elevated to become more supply chain aligned, the products and services that third-party logistics (3PL) providers offer are matching this requirement. Collaborate with your supply chain functions to understand and align their logistics needs and requirements and how your 3PL partner may be able to assist.
2 DEFINE OPTIMUM BUSINESS OUTCOMES. Logistics leaders should enter into an outsourcing partnership with a clear strategy or value roadmap detailing the outcomes and objectives that the 3PL relationship should fulfill. Lack of a strategy or roadmap will likely result in missed expectations from both sides and lead to relationship rot. 3 CONSIDER KEY CAPABILITY GAPS. As logistics organizations continue to transform to adapt to technology, data, risk and disruption—and all the modern influencing factors— leaders must look to their 3PLs to fill capability gaps wherever possible as they develop and elevate internal logistics. 4 UNDERSTAND THE FULL SUITE OF TECHNOLOGIES. The 3PL market is awash
your requirements now and in the future to fully extract the value on offer from this market and align your data journey with the right logistics partner. 5 EVALUATE A RANGE OF OUTSOURCING MODELS. There are several traditional freight forwarders, but also 3PLs from emerging communities of asset light, digital, terminal operators and shipping lines, all competing for your business. Consider all the options available and select vendors from different backgrounds to compare. 6 IDENTIFY 3PLs WITH INDUSTRY KNOWLEDGE. 3PLs that bring industry and market knowledge come
with a vast array of solutions that have been tested across markets. The 3PL may offer access to these solutions through innovation centers. If you can effectively extract this value, it is extremely valuable as your business adapts and develops. 7 DESIGN AN EVALUATION SCORECARD. Try to use a quantitative evaluation methodology to score and evaluate the logistics provider’s response and presentations as this will make the selection process more robust and ensure a mix of logistics and supply chain functions are engaged in the process.
10 CONSIDER YOUR NEEDS AND DESIRED CAPABILITIES IN THE FUTURE AND HOW THE 3PL CAN SUPPORT.
You are selecting a 3PL for today’s business environment but you also need to consider possible future needs of the business to future-proof the selection. No long-term transformations arise from frequently re-selecting third-party logistics providers.
with new technology, platforms, digitization
solutions and innovation so be sure to fully understand
SOURCE: MATTHEW BECKETT, SENIOR DIRECTOR ANALYST, GARTNER
8 Inbound Logistics • August 2025
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READERPROFILE
as told to Karen Kroll
Corporate Swag Goes Green
TARA MILBURN is founder and chief executive officer of Ethical Swag, a certified B Corporation and leader in responsibly produced and sourced promotional products. RESPONSIBILITIES: Leading Ethical Swag so that it retains its values of sustainability, inclusion, and ethical sourcing, while also building a company that is resilient and agile. EXPERIENCE: Chief executive officer, Mimir Networks; director, foreign direct investment, Nova Scotia Business, Inc.; director, communications and marketing, Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games; director, business development and customer care, Canuck Sports & Entertainment. EDUCATION: BComm, communication and marketing, Mount Allison University.
I started Ethical Swag because I was interested in doing business differently. I love business. But after 30 years in corporate life, I wanted to start my own company and demonstrate that we could do things differently. The day after I resigned from my corporate job, I received four job offers. One was with a well-funded cybersecurity startup. I told the founder I didn’t know anything about cybersecurity. He said he didn’t know a lot about business, so together we might be able to do something interesting. I joined the company. But after 18 months, I knew I needed more control over decisions and the ability to follow my vision. I wanted to create an organization whose mission is to significantly improve the lives of its employees, suppliers, and clients.
Initially, I didn’t know what my company would be. Then during a meeting, I recognized the frequent disconnect between what people said their companies stood for, and the products on which they put their logo. That led me to think about sustainability in the swag industry. GOING ALL IN In fall 2017, I made Ethical Swag my full-time focus. I launched our website in 2018 and hired my first employee at the beginning of 2019. During my research, buyers said, ‘I’d love to be more sustainable, but it’s either too expensive or the products are no good.’ I needed to figure out how to procure promotional products in a way that considers the people making them, the people buying them, the
materials that go into them, and how they’re transported. I rolled up my sleeves and pretty quickly found organizations that thought like me. For example, The Quality Certification Alliance was a third-party certification organization within the industry. It looked at product quality, supply chains, security, and labor practices. I didn’t have to reinvent the wheel, and instead, was able to use resources specific to our industry as I built up a certification and compliance department within Ethical Swag. At Ethical Swag, we have very clear definitions around our mission and values. For customers, we have an emoji system: good, better, best. It’s about meeting our customers where they are. If they can’t do ‘best,’ that’s okay. There’s no judgment.
10 Inbound Logistics • August 2025
READERPROFILE
and I can pursue my dreams, but we’d be able to be together without it being a challenge. 3 What book, movie, or other work has had an impact on you? A Fine Balance by Rohinton Mistry shows that despite overwhelming hardship, we still have the power to maintain a sense of purpose and dignity. How we show up in the world is important. He didn’t have land or money, but he had an idea. And now there’s a state-of-the-art arena in Vancouver, British Columbia that has unlocked other opportunities as well, including the 2010 Winter Olympic Games. His success made me realize you can think things and make them happen. Through my experience with the Olympic bid, I recognized the ability of business to solve big problems. I was lucky to work with some inspirational leaders who gave me the courage and motivation to look at business as a vehicle for change. n
Tara Milburn Answers the Big Questions 1 If you could compete in the Olympics, what sport would you choose? Soccer. I played semi-pro when I was younger and have always loved the sport. It’s not about being perfect, it’s about progress. For instance, ‘good’ products are the same products others are selling, but we’ve looked under the hood of the supply chain to make sure we understand where the product is coming from and how it’s made. Early in my career, I was with the Vancouver Canucks, an NHL team. The owner wanted to build the first privately funded hockey arena for his team. At the time, major sports arenas were publicly funded.
2 If you could have one superpower, what would it be? The ability to teleport. I’d love to be able to have Easter dinner with my family and not have them have to travel. Instead, they can pursue their dreams, wherever that may be,
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August 2025 • Inbound Logistics 11
NOTED [ IN FOCUS ]
The Supply Chain in Brief
> UP THE CHAIN
> GOOD WORKS
• DHL Group has given more than 30,000 refugees prospects in the labor market over the past 10 years and is one of the largest employers of refugees worldwide. In addition to permanent employment contracts and internships, about 350 refugees have completed an apprenticeship at DHL Group since 2015.
Anne Milgram, former Attorney General of New Jersey, joined the board of Overhaul. She’ll support Overhaul’s mission to disrupt criminal networks that target global supply chains.
Ryan Koos joined Banner Health as senior vice president and chief supply chain ofcer. Koos will oversee all aspects of Banner’s healthcare supply chain, including ordering, distribution, inventory, sourcing strategy and contracting.
• The Airbus Foundation, United Airlines, and Qatar Airways, along with The Aerospace Foundation, American Airlines, and the Woodward Charitable Trust, pledged a combined $17.4 million in nancial and ight support to Airlink. This pledge will help the disaster logistics nonprot deliver aid and transport disaster responders to communities worldwide that have been affected by humanitarian crises.
TOTE Group expanded its leadership team to support the organization’s long-term vision and to enhance customer value. Alex Hofeling (top) , currently president of TOTE Maritime Alaska, was promoted to the new role of chief commercial ofcer. With this transition, Bill Crawford , who served as vice president of commercial, was promoted to president of TOTE Maritime Alaska.
> SHOVEL READY
n Mindray, a healthcare technologies and solutions company, is expanding its North American warehouse facility. The expanded warehouse, scheduled to open in 2026, will consolidate o-site operations into one location, streamlining logistics and improving the customer experience.
> M&A
n WiseTech Global acquired e2open , a provider of SaaS-based solutions in the global logistics value chain for $3.25 billion, in a move to expand its reach and customer base internationally. n Siemens AG completed the acquisition of Dotmatics, a provider of life sciences research and development software. Dotmatics will form part of Siemens’ Digital Industries Software business, expanding Siemens’ Product Lifecycle Management portfolio into the growing life sciences market.
> MILESTONES
n Veteran- and woman-owned Warrior Logistics is celebrating one decade in business. Over the past decade, the company more than doubled its fleet and workforce to include 250+ employees and 150 trucks. It also diversified its oerings beyond dry van to include flatbed and drayage/port container solutions.
12 Inbound Logistics • August 2025
NOTED
> SEALED DEALS
> RECOGNITION
• Combilift, a multi- directional and customized handling solutions company, was awarded the Red Dot Award for Product Design 2025 for its Combi-CB70E, a
• Utah-based footwear retailer Walking Comfort is using Descartes Sellercloud to help drive ecommerce growth by centralizing and synchronizing the management of product listings, inventory, orders, and fulllment across multiple online sales channels.
high-capacity, electric-powered multidirectional forklift developed to meet the needs of heavy-duty, long-load handling in more sustainable ways. • Polaris Transportation Group received the 2025 MASTIO Quality Award in the Cross-Border/Regional Carrier Group category. It earned one of the top customer value ratings in the study: the Highest Performance/Superior Oering classification for cross-border and regional LTL. • Alliance Shippers was recognized as a leading performer by The Journal of Commerce ’s biannual Intermodal Scorecard survey, which identifies the top intermodal service providers in North America based on key performance indicators, customer satisfaction scores, and net promoter scores. • Wabash recognized 38 of its top suppliers with 2024 Wabash Supplier Awards for supply chain excellence, considering criteria such as innovation, quality, delivery, cost, and service. • CN’s Falcon Premium intermodal service received the Silver Container award from the AMTI, Mexico’s leading intermodal transport association. The award recognizes outstanding achievements in cross-border intermodal transportation between Mexico, the United States, and Canada. • Span Alaska ranked in the top three of cargo/logistics providers in the 2025 Best of Alaska Business awards, sponsored by Alaska Business magazine. The award reflects the votes of readers who judge a company’s overall performance, operations, and customer satisfaction.
• VARGO and its technology partner OPEX successfully completed a collaborative project for Gap Inc. With the implementation of the SureSort
system, VARGO boosted picking productivity by more than 10% and automated the work of ve manual put-to-order work stations. • As hurricane season approaches, Georgia-Pacic (GP) and Trackonomy have partnered to ensure that critical building materials arrive exactly when and where they’re needed most. Through this partnership, GP is equipping plywood shipments with Trackonomy’s real-time tracking technology to provide precise arrival visibility to retailers. • Electrical distributor Border States selected Blue Yonder to power its rst regional distribution center, slated to open in late 2026. Border States will deploy Blue Yonder Warehouse Management and Warehouse Labor Management solutions— underpinned by the Blue Yonder Platform—supported by Open Sky Group, a Blue Yonder partner. • Grimco, a provider of signage products and services, tapped Cleo’s supply chain orchestration solutions to streamline operations, improve forecasting, and enhance customer and vendor relationships. • Ford South America selected RELEX Solutions to accelerate its aftermarket auto parts supply chain operations. By replacing its existing supply chain solution, Ford aims to achieve higher service levels for dealers, improve forecasting accuracy, reduce inventory costs, and automate planning processes for greater efciency.
• Paper Transport expanded its partnership with the Green Bay Packers beyond logistics to include joint efforts in talent recruitment, brand visibility, and corporate culture.
August 2025 • Inbound Logistics 13
TAKEAWAYS Shaping the Future of the Global Supply Chain
PARSING OUT PARCEL SPEND Amid rising parcel volumes and increasingly ambiguous carrier pricing, Reveel’s inaugural Parcel Shipping Intelligence Market Survey uncovers a gap in how organizations understand and manage parcel spend. The survey of more than 150 North American supply chain and logistics leaders paints a clear picture: parcel shipping has become more complex and cost‑intensive, yet most shippers lack the insights needed to control it effectively. Most respondents predict their shipping volumes will increase or stay the same this year, but almost half (44%) report a lack of information about shipping expenses and what could help them improve. This points to growing frustration with carriers, as an overwhelming number of respondents (91%) plan to expand the number of carriers they utilize in order to mitigate rising and unpredictable parcel shipping fees. Other important takeaways include: • 87% of respondents expect their parcel shipping volumes to increase this year, while no organization anticipates a decline. • 44% report insufficient information on overall shipping costs. • 59% lack insight into demand forecasting, while 57% lack visibility into vendor (carrier) performance, and 50% lack clarity on inventory levels. • Respondents believe optimizing packaging (60%) and leveraging automation (48%) offer the strongest path toward reducing parcel shipping expenses. ( See chart below .) The report also indicates that parcel spend can consume a considerable amount of an organization’s budget—currently, logistics expenses average 22% of organizations’ overall operating expenses. Respondents report that, within their overall logistics budgets, parcel shipping costs break down as follows: • 37% allocate between $2 million and $10 million • 42% allocate between $10 million and $50 million • 21% allocate more than $50 million What Works: Most Effective Strategies to Reduce Shipping Costs Optimize packaging 60% Leveraging automation 48% Invest in shipping software for rate shopping 45% Annually renegotiating carrier contracts 41% Switching carriers 30% Diversifying carrier usage 22% We have not reduced shipping costs in the last year 11% Source: Reveel
Q4 LOGISTICS VIBES: “WAIT AND SEE”
What is your expected revenue growth for the next quarter?
Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Var
Positive
65% 70% 66% 68% 74% 77% 69% -1.6%
Neutral
18% 23% 19% 23% 12% 16% 17% 0.7%
Negative
18% 7% 15% 9% 14% 13% 14% 1.0%
Median
3.0% 2.0% 2.0% 3.0% 1.0% 2.0% 2.0% 0.0%
BlueGrace Logistics’ latest Logistics Confidence Index report—based on a quarterly survey of North American shippers across LTL and FTL modes— paints a nuanced picture of freight-sector sentiment as we move into Q4 2025. While confidence in revenue retreats, companies remain cautious around inventory positioning and order volume stability. Taken together, the trends suggest mild pessimism underpinned by a strategy-focused approach to operational resilience, notes the Index. “With looming interest rate drops that have yet to come to fruition and continuing volatility in trade agreements and tariff implications, it seems ‘wait and see’ continues to be the theme for 2025,” explains BlueGrace’s Jason Lockard, senior vice president of managed logistics. What to expect in Q4, according to the Confidence Index: Revenue expectations take a dip. (See chart above) • 69% of shippers forecast positive revenue growth in Q4 2025, an almost 10-point drop from 77% in Q3, though up slightly from one year ago. • Neutral sentiment dropped to 17% (from 23% in Q4 2024), while negative sentiment hit 14%, in line with earlier 2025 expectations. Inventory outlook stabilizes—with cautious restraint. • Inventory expectations saw a notable shift for Q4, with a 14.8-point decline in positive responses offset by a 14.6-point rise in neutral sentiment quarter-over-quarter. Order-growth sentiment shifts to neutral. • A majority (60%) of shippers shifted into the “neutral” category, marking the second-highest level of neutral sentiment since Q4 2023. The mean growth expectation declined from 1.7% to 1.2%, while the median fell to 0%, down from 1% last quarter.
14 Inbound Logistics • August 2025
TAKEAWAYS
SUMMER SHIPPING FACES HEADWINDS Global Manufacturing PMI 2024 vs 2025
Though the number of “out-of-office” email responses ticks up throughout the summer as vacations proliferate, the global supply chain is still hard at work. Current economic indicators, as reported in Dimerco’s August Asia Pacific Freight Report —based on data through June 2025—illustrate how tariffs, inflation, and other geopolitical events are playing out across logistics networks this season: Manufacturing rebounds slightly, but uncertainty lingers. Global manufacturing picked up slightly in June, with production rising at the fastest pace in three months. The Global Manufacturing Purchasing Managers’ Index (PMI) hit 50.3 in June, compared with a PMI of 49.6 in May. ( See graph, left .) This was mainly due to U.S. companies rushing orders before the new tariffs took effect on July 9. However, overall growth is still slower than before the pandemic, and businesses remain cautious because of ongoing trade tensions and global uncertainties, finds the report. U.S. retail sales slip as consumers turn cautious. U.S. retail sales fell in June for the first time since February, with most categories down except digital products—hinting that shoppers are cautious amid tariff concerns and unclear policies. Many companies have already frontloaded inventories, which may dampen export demand. While the economy stays stable, trade uncertainty continues to affect consumer behavior and global shipping for the rest of 2025. Other logistics “wild cards” noted in the report include the potential impact on air freight stability from summer monsoon season in much of Asia; predicted ongoing ocean freight disruption due to tariff unpredictability; and the possibility that Middle East tensions will reignite problematic sailings in the Red Sea.
51.5 51.0 50.5 50.1 50.0 50.0 49.5 49.0 48.5
50.9 50.9
50.6 50.6
50.0
50.3 50.3
50.3 49.8
50.3
49.7
49.6
49.6
49.5
49.4
48.8
2024
2025
Source: S&P Global Manufacturing PMI
RURAL AMERICA’S MANUFACTURING MOMENT A new McKinsey Institute for Economic Mobility report forecasts a transformative decade for rural America, with $1 trillion in announced advanced manufacturing investments—63% of it within commuting distance of rural communities. Driven by reshoring, supply chain resilience, and technological change, this wave of capital is poised to create high-quality jobs and inject an estimated $34 billion annually into rural wages. • Helping schools deliver core literacy, math, and critical thinking skills. • Co-designing STEM and technical curricula. • Creating work-based learning opportunities. Notably, eight in 10 rural students want such career-connected learning, but fewer than half report access. McKinsey’s key takeaway? Companies that act now to integrate workforce development into their expansion plans stand to secure a competitive talent advantage, reduce attrition, and deepen their community impact.
For supply chain and manufacturing leaders, the opportunity is clear but conditional: by 2030, the United States could face a 2.1 million worker shortfall in manufacturing, including a 58% gap in semiconductor roles. Rural K-12 schools—particularly in what McKinsey deems “manufacturing workshop” and “middle America” archetypes— will be essential partners in building the talent pipeline.
Nearly two-thirds of the $1 trillion in announced advanced-manufacturing investments will support facilities within commuting distance of rural America. Share of strategic-sector manufacturing investment* announcements by geography, 2021-24, % of total
Stronger school-industry collaboration could deliver $20 billion annually in productivity and retention gains, the report estimates. Strategies include expanding career and technical education, dual-enrollment, youth apprenticeships, and industry-driven career academies. Existing programs have shown that early, sustained engagement with students—aligned to local industry needs—can produce credentialed, job-ready graduates. The report urges executives to move beyond sporadic outreach toward sustained, multi-year engagement through actions including:
100
37
Commuting distance from community
28
63
8
4
23
In rural community
≤5 miles
5-10 miles
10-15 miles
Within commuting distance
>15 miles
Total
*Inclusive of new facility construction, facility expansion, and facility modernization. The Brookings Institution defines strategic manufacturing sectors as clean technology, semiconductors and electronics, biomanufacturing, and other advanced industries (eg, heavy industry, chemicals and materials, steel, aluminum). Source: AAA Foundation; Brookings Institution; US Census Bureau; White House; McKinsey analysis
August 2025 • Inbound Logistics 15
KNOWLEDGE Base SPONSORED CONTENT
Seeing more polybags in your operation? Don’t be alarmed. As packaging continues to shift, here’s how you can adapt your automation. How to Stop the Ugly Parcel Problem Before It Stops You P arcel packaging continues to evolve, and so do the challenges it brings to warehouse operations.
We’re seeing a fundamental shift in how automation needs to work. And it’s not just about packaging. It’s also what’s inside. Perfume, for instance, shifts inside the container, changing the center of gravity. In a polybag, that variability gets even harder to manage during sortation. Designing with the Right Priorities When we built the Pop-Up Shuttle Diverter, we didn’t just want to make it better. We wanted to make it purpose- built. That meant: • Reliable polybag handling as the baseline, not the exception • No added complexity for upstream or downstream systems • Improved throughput, minimizing downtime and manual intervention The design eliminates roller gaps and ensures better package control, especially for soft, lightweight parcels. Our goal was to reduce jams, misroutes, and staff strain. What Often Gets Overlooked In many cases, performance issues stem not just from the equipment itself, but from how it’s implemented and maintained. One challenge we often observe in the eld is missing or unclear standard operating procedures or inconsistent adherence to machine guidelines. For example, if a system is designed to sort packages weighing 10 pounds
The biggest disruption in recent years? Polybags. Shippers are shifting to soft, lightweight packaging for cost or
sustainability reasons. But from a sorting and automation perspective, polybags come with a host of headaches: They slump, shift, catch on rollers, and often arrive with uneven weight distribution, turning a minor issue into a shutdown. When we started redesigning our diverter module at Engineering Innovation, our main goal was to build something that could handle these changes. We developed the Pop-Up Shuttle Divert module to eliminate inefciencies with better polybag sorting and reduced dead space. Understanding the Core Problem Traditional divert modules use rollers with small gaps between them— commonly referred to as dead zones due to how often parcels get stuck there during diverting. While these gaps might seem minor, they create real problems for polybags with shifting contents. Even a slight snag can slow throughput or halt operations. To give you an idea of how critical the issue is: One facility processing primarily boxes could run about 280 packages before experiencing a machine stoppage due to misrouting. The same facility, on a job where most items were polybags, hit the same problem after just 31 packages.
and up but is routinely handling 1-pound prescription bottles or similarly lightweight items, it may not operate as intended. Ensuring that operational standards are in place and followed is essential to getting the most out of any automated solution. The Takeaway As packaging continues to shift, the need to adapt your automation strategy becomes more urgent. Whether it’s through smarter equipment or better process adherence, solving the ugly parcel problem starts with understanding what your system is truly designed to handle and where it needs support. Seeing more polybags in your operation? Let’s talk about practical ways to adapt. Reach out today.
–By Tushar Sonvani
Project Manager Engineering Innovation, Inc.
Engineering Innovation ’s dedicated team of engineers and industry experts empowers your business with innovative solutions that streamline shipping and mailing operations. Since 2006, Engineering Innovation has been a trusted partner to companies of all sizes, helping them achieve greater eciency, reduce costs, and meet ever-evolving demands. www.eii-online.com
www.eii-online.com sales@eii-online.com 765-807-0699
16 Inbound Logistics • August 2025
SPONSORED CONTENT
SOLVED Supply Chain Challenge? The NMFC Overhaul:
How Shippers Can Adjust to Updates The changes to the NMFC classification system that took effect on July 19, 2025, have major implications on LTL shipping. The impact on freight rates varies. Here’s how to manage:
keep abreast of any updates or clarifications regarding the new classification system. ■ Assess commod- ity classifications. Shippers should con- duct a thorough review
challenges. The tech- nology created by SMC³ forms a digi- tal link between all stakeholders in the industry, empow- ering shippers and 3PLs to effec- tively manage their LTL operations from start to finish. This includes bid management, rate comparisons among providers, transit planning and scheduling of pick- ups, and invoice auditing. The analytical data and technological capa- bilities offered by SMC³ are crucial for strategic planning, optimizing trans- portation modes, and swiftly adapting to the ever-changing market conditions. SMC³’s BatchMark® XL is a quick batch rating tool that deliv- ers comprehensive analysis of freight expenses to shippers, 3PLs, and carri- ers. With this tool, users can simulate various scenarios and make adjustments to their freight characteristics, such as changes in shipment classifications. The high-speed batch rating feature of BatchMark XL allows for efficient calcu- lation of LTL expenses across multiple shipments in just a matter of minutes.
THE CHALLENGE One prominent obstacle facing the industry is the potential for shifting freight trends as production and manufacturing facilities are relocated worldwide, with companies striving to improve cost- effectiveness, speed of manufacturing, and inventory management. Shippers are carefully considering how these factors may impact their logistics and are contemplating increasing onshore inventory levels in anticipation of potential disruptions. In the world of less-than-truckload (LTL) shipping, the significant changes to the NMFC classification system, implemented in July 2025, represent a formidable hurdle. The impact on freight rates varies from increases to reductions, depending on the density of individual shipments. A thorough examination is necessary for shippers to comprehend the ramifications for shipping expenses. Those lacking established protocols for accurately measuring package density or managing cargo packaging will likely face significant disadvantages. THE SOLUTION ■ Stay informed. It is crucial for shippers to stay informed about the latest developments and information related to the NMFC changes. Shippers should regularly consult the NMFTA website and other industry resources to
of their commodity classifications to understand how the NMFC changes impact their freight classes and rates. This assessment will help shippers iden- tify potential cost implications and adjust their shipping strategies accordingly. ■ Optimize packaging. Efficient packaging practices are essential for min- imizing density-driven costs. Shippers should evaluate their current packag- ing methods and explore opportunities to optimize package design and materi- als to reduce the overall dimensions and weight of their shipments. ■ Collaborate with carriers. Open communication and collaboration with LTL carriers are crucial for navigating the NMFC changes. Shippers should engage in discussions with their carriers to understand their approach to the new classification system and explore mitigation strategies. CALCULATE THE IMPACT TO YOUR TRANSPORTATION SPEND SMC³ provides educational materials and transportation technology solu- tions to aid shippers, third-party logistics providers, and carriers in tackling
www.smc3.com
18 Inbound Logistics • August 2025
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