Inbound Logistics | September 2024

WMS ROUNDUP FREIGHT PAY PROVIDERS SOLVE THE CASE

TOP 100 TRUCKERS: SERVICE AT THE DROP OF A HAT MARKET SURVEY: TRUCKERS STAY THE COURSE

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ELECTRONIC BILL OF LADING (eBOL)

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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS

QUITE A HAUL 70%+ of U.S. freight by weight is transported by truck, amounting to... 11 BILLION TONS of goods annually 3.7 MILLION Number of long-haul truck drivers in the United States $800 BILLION Trucking industry’s annual revenue

ROBO-SOLVER CRACKS THE CUBE Mitsubishi Electric’s TOKUI Fast Accurate Synchronized motion Testing Robot (nicknamed TOKUFASTbot) set a new Rubik’s Cube record with a solving time of 0.305 seconds , torching the previous fastest Rubik’s Cube robot solve time by 0.38 seconds. In 2023, human speedcuber Max Park set a Guinness World Record for solving the cube with a blazing fast time of 3.13 seconds, which shaved 0.34 seconds off the previous record. TOKUFASTbot can perform a 90-degree rotation in just 0.009 seconds using a mechanism that combines the company’s signal-responsive servomotors and a color- recognition algorithm that researchers designed using in-house AI technology.

BASEBALL TO UMPS: ‘YOU’RE OUT!’ Baseball may begin to use robot umpires as soon as the 2025 season, but just for calling balls and strikes. The league has made “material progress” in testing an automated ball-strike system, referred to as ABS, says Baseball Commissioner Rob Manfred. Minor league teams have been experimenting with ABS for about five years, and at this point the technology “is good to a hundredth of an inch,” Manfred says. ABS assesses balls and strikes based on “where the ball crosses the midpoint of the plate,” according to the AP. There continues to be “technical issues” around how the strike zone is defined, Manfred notes. STOP, THIEF! Cargo theft is growing across North America, finds Overhaul’s latest report, which reveals a 49% increase in incidents compared to the same period last year. Key findings: • Average loss per incident soared by 83% to $115,230 . • Electronics remain the most targeted, comprising 23% of all thefts . • California is the hardest-hit state , accounting for 45% of all reported cargo thefts. • Warehouse and DC thefts have increased sharply , now representing 19% of all incidents, compared to 4% in the first half of 2023.

OLYMPIC SIZED SALE More than 45,000 pieces of furniture, fixtures, and equipment used to furnish the Olympic Village, athlete apartments, and sporting venues in Paris are hitting the online auction block and being sold in bulk quantities to the highest bidders. In support of its sustainable event management initiatives, Olympic sponsor RGS Events teamed up with B-Stock to find a second life for the items. Many items have already been purchased, through four different business buyers.

• One buyer purchased 10 full truckloads of inventory. • 26,000 chairs were available (including barber chairs). • 3,000 sofas in varying colors and sizes were sold. • 10,000 barrier belts took the top spot for items sold.

September 2024 • Inbound Logistics 1

CONTENTS FEATURES 32 HATS OFF TO CORE CARRIERS! SEPTEMBER 2024 | VOL. 44 | NO. 9

Want to be brimming with confidence about your core carrier selection? When weighing this critical decision, consider a range of complex factors before tipping your cap to any one trucking company. SHIPPERS Have you experienced a shortage of truck capacity?

46 TOP 100 TRUCKERS Inbound Logistics ’ annual Top 100 Truckers list helps you find carrier partners that best fuel your diverse and demanding needs, especially in today’s constantly changing business climate.

57 SPONSORED FREIGHT BILL AUDIT AND PAYMENT PROVIDERS SOLVE THE CASE Clued in by big data and AI, providers detect anomalies and dig up crucial information that shippers can use to optimize transportation costs and improve operational efficiency. 78 SPONSORED

Yes 55 %

No 45 %

38 MARKET RESEARCH: 2024 TRUCKING PERSPECTIVES In this year’s deep dive into the trucking market, Inbound Logistics explores the issues of greatest concern to motor carriers and their customers.

WMS 2024: SOLUTIONS UNLOCK WAREHOUSE EFFICIENCIES

Bringing benefits including inventory visibility and order accuracy, these leading warehouse management systems (WMS) can help you gain operational insights and tackle the ecommerce boom.

2 Inbound Logistics • September 2024

Will the nearshoring trend continue under Mexico’s new presidential administration?

INPRACTICE 10 LEADERSHIP Bryn Heimbeck: Helping Shippers Say ‘Yes’ to Global Trade

Using software to solve problems has been at the heart of Trade Tech’s mission since Bryn Heimbeck co-founded the company in 1997. Today, Heimbeck keeps the Trade Tech platform evolving to make global trade easier for shippers everywhere.

INFOCUS 1 INFO SNACKS 12 NOTED 14 TAKEAWAYS 92 IN BRIEF

INSIGHT 4 CHECKING IN How ESG policy impacts truckers 6 GOOD QUESTION What’s the first thing you would do to combat cargo theft? 8 10 TIPS Managing inventory effectively 28 ARTIFICIAL INTELLIGENCE Protecting supply chain trade secrets 30 REVERSE LOGISTICS Ecommerce and logistics partnerships evolve 96 LAST MILE World’s largest cargo plane takes off

CONTENT PARTNERS 20 How to Integrate AI Into Your Supply Chain Offered by Odyssey 22 Cross-Border Logistics for Mexico Is Complex—We Can Make It Simple Offered by Landstar 24 Ice Machine Subscription Company Navigates Rapid Growth With Support From Echo Logistics Offered by Echo Global Logistics 26 Syfan Logistics Solves Communication Problem for Wisconsin Chemical Company Offered by Syfan Logistics 27 Unlocking Ecommerce Excellence with Generix SOLOCHAIN WMS: A Success Story Offered by Generix Group

GOOD QUESTION What’s the first thing you would do to combat cargo theft?

INFO 86 SUPPLY CHAIN INSIGHTS 88 WEB_CITE CITY 94 RESOURCE CENTER

Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas, a Xometry company, 6116 Executive Blvd, Suite 800, North Bethesda, MD 20852. Periodicals postage paid at North Bethesda, MD, and additional mailing 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

September 2024 • Inbound Logistics 3

CHECKINGIN

How ESG Policy Impacts Truckers

Vol. 44, No. 9 September 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

STAFF

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

PUBLISHER

H ow do ESG mandates impact trucking? Let’s take a look at some examples. Leading global transportation and logistics player DSV, with headquarters in Denmark, just ordered 300 electric vehicles from Volvo Trucks. If those trucks get the job done, DSV plans to order 2,000 more, making those EVs 10% of the 20,000 total DSV fleet on the road today. Volvo redesigned its new trucks for aerodynamics and they are reputed to be the most efficient tractor trailers

EDITOR

SENIOR EDITOR

DIRECTOR OF STRATEGIC CONTENT

Amy Roach amy.roach@thomasnet.com

Merrill Douglas Tom Gresham Karen M. Kroll Gary Wollenhaupt

CONTRIBUTING EDITORS

Keith Biondo, Publisher

manufactured today. If DSV places that order, it will operate the largest electric trucking fleet in the EU and Volvo will have 4,000+ electric semi- trucks on the road, logging millions of ESG shipment miles. There is interesting electric vehicle news on this side of the pond too. Pitt Ohio, an Inbound Logistics 2024 Top 100 Trucker, has added 10 Mack MD Electric trucks to its fleet. The Mack MD has 230 miles of range and can reportedly fast charge to 80% in about two hours using a fast charger. “We believe the Mack MD will provide the best range and payload from a value standpoint,” says Taki Darakos, vice president of vehicle maintenance and fleet services at Pitt Ohio. “We are excited that the current capabilities should be able to mimic 85% of our conventional box truck fleet in terms of range and payload.” Those 10 green semis compose only a fraction of the Pitt Ohio fleet, but it is a way for the trucker to explore the viability and reality of shifting over-the- road transportation operations to electric trucks. Other carriers responding to our Trucking Perspectives market research report ( see page 38 ) cite government policies, regulations, and compliance as one of their greatest challenges—specifically sustainability requirements (26%). The challenge of considering electric vehicles troubled 19% of respondents. Besides environmental motivations, there is legitimate concern about the long-term availability of diesel for ICE tractor trailer fleets. And consider that the high cost of EVs will impact a major portion of U.S. lift—owner operators. Will OOs ever be able to afford an EV semi? Compliance requirements and CO2 savings come at a significant cost. A semi truck, including its cargo, can legally weigh a maximum of 80,000 pounds, while a battery for an electric truck can weigh up to 16,000 pounds, according to a recent CNBC report. Put another way, that’s nearly one-quarter of the truck’s total weight. Less CO2 and more green compliance that sacrifices critical weight for heavy batteries reduces slim margins for U.S. carriers and owner operators even more.

Jeof Vita jvita@inboundlogistics.com

CREATIVE DIRECTOR

Nicole Estep Arlene So

DESIGNERS

DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR

Amy Palmisano apalmisano@inboundlogistics.com

Sonia Casiano sonia@inboundlogistics.com

Carolyn Smolin

SALES STAFF PUBLISHER: Keith Biondo

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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 • September 2024

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GOODQUESTION Readers Weigh In

What’s the First Thing You Would Do to Combat Cargo Theft?

PUT STRONG DATA- COLLECTING and reporting processes in place. Compile and maintain a clean data set regarding

Vet and Verify Implement a detailed vetting process , then review and update it every 6 months at minimum. Use the service providers and resources that can help with your vetting process. Pay close attention to details: The difference between your shipment making it from point A to point B could be the difference between a lower-case L and an upper case I or a number added that wouldn’t normally be in the email address. –Jessica Renner, CCP Cargo Claims and Risk Manager, Jarrett Board of Directors, Transportation & Logistics Council Carefully vet logistics service providers. The frequency of incidents involving thieves acting upon inside information is alarming. Providers throughout the global supply chain have access to cargo descriptions, values, locations, timing, and security measures, providing a road map of what to steal and when to steal it. Entrust cargo to valued business partners. –Jason Odgers Senior Vice President, World Insurance Services Put a strict carrier vetting process in place that outlines the requirements for working with the carrier. This can include years in service, number of power units, safety ratings, and other minimum criteria necessary to start working with a carrier. –Frank Matarazzo CEO, Fusion Transport

stolen loads, attack vectors (direct physical theft vs. digital fraud vs. social engineering), financial impact, and customer impact to help your team deduce the issue’s root cause and mitigate it effectively. –Jack Gerstner Senior Vice President, Coverage & Operations, Coyote Logistics PULL TOGETHER PEOPLE FROM WITHIN THE INDUSTRY, including the relevant government agencies, to help find a consensus. –Steve Healy CEO, COREX Logistics ENHANCE PHYSICAL SECURITY MEASURES. Some products have higher street values than others, so those require higher security measures such as physical access controls at the yard as well as seals and sensor cameras on products that provide alerts for tampering. –Ann Marie Jonkman Vice President, Industry Strategy, Blue Yonder LEARN ABOUT MODERN THEFT METHODS , commonly targeted goods, and high-theft regions. Next, audit and continuously optimize your cargo theft prevention processes, technology, and insurance to mitigate risk and loss. –Kenneth Hull Vice President, Compliance, Arrive Logistics

ADOPT A RISK-BASED APPROACH. Assess each transit by evaluating the

MOVE HIGHLY TRANSFERABLE COMMODITIES VIA RAIL making sure to load on the bottom of the train. Then there is no way to open the swing doors, preventing theft. When intermodal isn’t an option, careful carrier vetting and putting extra care into highly transferable loads has been our safest option. –John Newton

cargo for illicit demand, the mode of transport, and location. Tailor security for risks like hijacking or concealed theft and design measures—routes, transit times, driver needs, GPS, remote engine locks, and hardened vehicles—while balancing risk and cost. –Peter Hunt VP, Brand Protection, Security and Resiliency, Flex

Senior Vice President, Business Development, TA Services

6 Inbound Logistics • September 2024

GOODQUESTION

MAP OUT WHO IS RESPONSIBLE for

each part in the supply chain, from manufacturing to the distribution center through to the final delivery of goods. There’s no substitute for a detailed understanding of your supply chain partners and the practices they have in place to counter theft. –Tony Pelli Practice Director, Security and Resilience, BSI IMPLEMENT A TELEMATICS SOLUTION to monitor and control refrigeration units, track consignments, and use features like alerts, alarms, geo-fencing, and geo-tracking for full cold chain control. Door sensors, a key feature, prevent cargo theft by providing real-time alerts. –Alan Peart Telematics Sales Manager, Global Container Refrigeration, Carrier Transicold

Quick To-Do’s  Use Air Cuff locks on trailers.  Have on-site security at facilities that are in high-theft areas.  Ensure drivers go no less then 250 miles prior to stopping.  Ensure drivers do not stop to fuel or break in high-crime areas or certain cities that are known to be high-theft areas.  Have drivers fuel prior to taking the load out. –Tammie Dean Recruitment Manager, Lily Transportation

CONSTANTLY MOVE CARGO as it is ripe for

opened unexpectedly provides data to pinpoint when and where threats occur. –Bryant Smith Director, Product Management, Manhattan Associates REMOVE ALL BRANDING FROM YOUR MASTER CASES. Beyond that, it’s critical to provide your end customer with real-time shipping data, including alerts to notify them the moment the product reaches its destination so they can immediately retrieve their product. –Brian Tu Chief Revenue Officer, DCL Logistics START WITH A STRONGER MECHANISM than typical container seals to combat containerized cargo theft. Bolt seals, for example, are inexpensive and commonly used. However, since these can still be defeated, it’s recommended to implement additional deterrents such as locking bars and cable seals. –Andrew Rossell VP Operations, ASF Global Logistics

picking when idle. Sometimes, even proper planning is insufficient to ensure cargo does not sit idle at port or transshipment. Shippers need visibility into en-route risks and delays to react quickly to keep freight away from prying hands. –Doug DeLuca Product Marketing Manager, SAP Business Network COMBINE AUTOMATED CARRIER VETTING TECHNOLOGIES , frequent and thorough training/education of front- line brokers to detect fraud schemes, and strict security procedures to validate that the driver and truck arriving for pickup is whom the load was tendered to. –Jordan Solomon Director, Risk Management, Kenco INVEST IN TRAILER DOOR MONITORING sensors or services. Knowing when a door has been

FOSTER A UNIFIED APPROACH among employees and drivers through awareness and training programs. When

everyone is well-informed about the latest theft tactics and prevention strategies, and remains vigilant for suspicious activity, it becomes harder for theft to happen. Implement SOPs to enhance vigilance and counter the creativity of modern criminals. –Normand Frigon Chief Operating Officer, MODE Global UTILIZE EXISTING CARRIER RELATIONSHIPS. Knowing who has your freight is crucial. –Jeff Goins Director, Carrier Sales, Circle Logistics IMPLEMENT A TWO-STEP PROCESS. First, intentionally create a decoy. Load containers with tracking devices and fake shipments. This would potentially catch perpetrators. Second, use tracking devices with artificial intelligence-

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

based analysis allowing for a proactive approach to theft.

–Stephen Dombroski Director, Consumer Markets, QAD

September 2024 • Inbound Logistics 7

10 TIPS 1 IMPLEMENT ROBUST

Effective inventory management starts with a proactive philosophy. Here are 10 steps to take that can help you improve accuracy, increase efficiency, and control costs. Managing Inventory Effectively

mobile robots and lighted pick/put solutions help get orders out the door accurately while ensuring that accurate inventory is maintained in the warehouse. 8 CAPTURE POST-MORTEM DATA. Establish a process for follow- up once an order ships. You want to learn about any issues, resolve them quickly, and ensure a good client experience. Any discrepancies or adverse findings create data points that you can act on. That data capture is critical, as it helps identify the root cause of the issue. 9 ADDRESS SHRINKAGE ISSUES. By keeping a close eye on the data, you can identify inventory inaccuracies and trends. This iterative process can help you to reduce shrinkage and manage risk over time. Inventory accuracy tracking can’t be out of sight and out of mind. Daily metrics tracking helps to identify and address problems quickly.

RECEIVING PROCEDURES. Effective inventory management starts with accuracy and efficiency on the inbound side. When shipments from vendors arrive, verify that you received what you ordered, in full and undamaged. It’s critical to identify any issues quickly. Once you receive an order, you’ll have limited time to make a claim.

2 GUARD AGAINST ERRORS. Establish a proactive maintenance program to

4 MINIMIZE PRODUCT HOLD TIME. The longer products sit in the warehouse, the greater the cost of goods sold (COGS). To preserve the margin potential of inventory in the warehouse, maximize storage density and increase inventory turns. The greater your turns, the lower your COGS. 5 CONSIDER ROTATIONAL STRATEGIES. First In, First Out, for example, can minimize overall inventory costs over time. First Expire, First Out can minimize the risk of obsolescence. Deploy the appropriate rotation strategy for each part of your business. 6 LEVERAGE INFORMATION SYSTEMS. A robust ERP or WMS can streamline and automate inventory management,

taking human decision- making out of the equation, which also helps reduce labor costs. If your inventory supports orders for multiple sales channels, it’s especially important to use robust, intuitive systems that can handle that level of complexity. 7 UTILIZE TECHNOLOGY TO OPTIMIZE PROCESSES. Systems can also improve specific processes. With cycle-counting, for example, a WMS can validate a physical inventory count. Using a double-blind process and supervisory re-count for two-way validation significantly improves accuracy. Advanced automation and robotics can help to ensure accurate order processing, which is directly tied to inventory management. Autonomous

identify any errors that may occur within the four walls of the warehouse. Structure the program so that cycle- counting (proactive inventory audit) is based on the most important criteria. 3 ESTABLISH INVENTORY HIERARCHY. Typically, inventory hierarchy involves ranking SKUs or SKU categories based on their value, velocity, seasonality, or other priority. Organize your inventory into high (A), medium (B), and low movers (C). Then align processes accordingly to ensure that you count on the appropriate frequency. Ideally, the frequency should be commensurate

with how often SKUs are touched since each

touchpoint is an opportunity for error. You might count A’s monthly, B’s quarterly, and C’s annually to ensure your program creates the most value.

10 ESTABLISH A CONTINUOUS IMPROVEMENT PROGRAM.

A continuous improvement program is essential for effective inventory management. By improving productivity, accuracy, and consistency, Lean methodologies can help to drive cost savings and operational excellence.

SOURCE: ZACHARY PURDOM, REGIONAL SENIOR DIRECTOR OF OPERATIONS, SADDLE CREEK LOGISTICS SERVICES

8 Inbound Logistics • September 2024

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LEADERSHIP Conversations with the Captains of Industry

A Platform for Paradigm Change

In the 1980s, it took Bryn Heimbeck six months to type a bill of lading without mistakes on an IBM Selectric. “The team gave me a standing ovation,” he recalls. A few years further along in his global trade career, Heimbeck left the typewriter far behind as he began to write computer code. “When you learn to program, you think about how you can use software to solve problems,” he says. Those early problem-solving efforts bore abundant fruit in 1997, when Heimbeck and his colleague Kevin Clark co-founded Trade Tech, a digital platform for global trade. Heimbeck, the president of Trade Tech, sat down with us recently to discuss the company’s history and current activities, and how he’s leading it into the future. IL: What opportunities did you and Kevin Clark observe in the 1990s that prompted you to found Trade Tech? Kevin and I worked together at Fritz Companies. He’d been reading about the internet, which the U.S. military had developed to give personnel access to computer applications from any location. It occurred to me that if you could have a supply chain management application available from anywhere, then when customers asked if we could handle their business in obscure but growing markets, we could always say yes. If we could get people all operating on a single platform, housed on one server that could be located anywhere, then they could work together. There wasn’t anything called Software as a Service at the time. We had to invent a browser- based front end by turning forms around so we could push data out. IL: What’s one lesson you learned early in your career that helped to shape you as a leader? Back in the day, we used fax machines. You printed a document, dialed a number, and maybe got a busy signal. Your phone rang, so you set down the paper and took a call from someone else who also needed a document. You printed that and went back to the fax machine, forgetting that the last document hadn’t gone through yet. It was terribly inefficient. Then we put in autofaxing, and my team loved it immediately. It’s important to identify what people spend the most time on and what causes problems. Then they trust you, and when you introduce something new, they don’t push back.

Bryn Heimbeck Co-founder and President Trade Tech

From using a typewriter and fax machine to an automated accounting process, Bryn Heimbeck has done it all. These days, he continues to strive to make all processes easier so everyone sleeps better at night.

by Merrill Douglas

10 Inbound Logistics • September 2024

LEADERSHIP

terminal operators know when cargo will be cleared and when it’s scheduled to leave the terminal, then instead of simply stacking containers five high at random, they can make efficient decisions about how to process those containers. IL: What are the first things you check on each morning? Our daily performance reports come out at 8 a.m., and I’m right there at 8:01. We’re a self-funding company, and our performance directly impacts our ability to reinvest. Then I look at sales—how are we doing and how can I help? I also look at how the programmers are doing on development projects. What kinds of roadblocks are they running into, and how can I help them work through the design issues? IL: If you could trade places with anyone for a day, alive or from history, who would it be? I’d love to step back to the days when Nikola Tesla was working on that new thing they called electricity. Edison got most of the credit because he was better at raising money, but it was Tesla who came up with the real technical breakthroughs. I’d like to see how we could have made it easier and faster for people to adopt electricity, and then see how we could apply those principles to digital platforms. IL: Outside of work, how do you like to spend your time? I love outdoor sports. I row competitively at the master’s level, in the winter I go snow skiing, and I love hiking and camping, particularly with my boys. I’m an avid sailor. And I like gardening. In addition, I work with the Washington Council for International Trade to advocate for free trade. And I love doing things with my kids and grandkids. n Thirst for Knowledge One of the most important qualities Bryn Heimbeck seeks in his direct reports is a passion for learning. “Global supply chain management is complex and becoming more so by the day— wonderfully so,” he says. Case in point: “I was in Vietnam recently, and I was amazed to discover that there’s an enormous Latino community there. People need to learn to deal with these new levels of globalization.” Team members also need to understand Trade Tech’s platform, the solutions the company has built on that base, and the impact of new technologies. “There are all sorts of things on Amazon Web Services that are enhancing the scalability of our platform,” Heimbeck says. “You can’t sell what you don’t know how to use, or help customers learn how to use it. We’re in a dynamic revolution. I need people who are driven to learn.”

IL: What keeps your customers awake at night? My biggest customers worry about accounting. That’s a tough function in global trade, because it always takes at least two offices to complete a transaction. You can have cost and revenue at origin, or cost and revenue at destination, or a mix of the two. Keeping track of that is a chore, and it’s prone to errors. I’ve watched companies go into bankruptcy or forced acquisition because their books weren’t in order. But when all your transactions take place on a single platform, you get a paradigm change. You have origin and destination doing accounting on the same shipment files, with all the data visible to everyone who needs to see it. No one neglects to enter cost or origin data because they assume someone else has done it. As you make these processes easier, you eliminate the worry and everyone can sleep at night. IL: Among the challenges your company faces today, which do you find most interesting? For the past six months we’ve been automating our own accounting processes, applying Trade Tech to Trade Tech. Customer service agents and salespeople shouldn’t be administering accounting. My goal is to have one person at a high level watching what the machine is doing. IL: What characteristics make you an effective leader? It starts with humility. I try to be nice to people but hold them accountable for achieving their goals. I focus on the community. And, most important, I stress equality among cultures, ethnicities, and genders. We’re a multinational company. Each and every one of us is important. We might have an American flavor, because that’s where the leadership is right now, but that’s going to change over time. IL: Besides automating accounting, what new and interesting things are you working on at Trade Tech these days? One of our teams is in the early phases of a project for a customer with precise demands for data in the origin process— making the booking with the carrier, getting confirmation, and coordinating with the warehouses. I think we can automate 90% of that process. Next year, we plan to automate the U.S. Customs clearance process. Finally, we want to use that clearance data to get better information to the ports. If

September 2024 • Inbound Logistics 11

NOTED [ IN FOCUS ]

The Supply Chain in Brief

> GOOD WORKS

> RECOGNITION

• When students from Star Academy in Boston learned their pen pals in Kenya were affected by heavy flooding, they helped collect more than 20 boxes of essential items including clothing, footwear, canned food, hygiene products,

• Greg Swift, a longtime driver for Schneider National, achieved the milestone of driving five million

and school supplies. DHL Express shipped all the supplies, covering the transportation costs. The aid will support at least 100 students in Kenya.

miles without a preventable accident . Only two other drivers in Schneider’s nearly 90-year history reached this feat. Schneider recognized Swift’s achievement with a parade, a Sound the Horn celebration, and a $10,000 bonus.

• As part of its participation in fundraising initiatives for Wreaths Across America, the National Motor Freight Traffic Association aims to virtually fill a tractor trailer with 5,000 sponsored veterans’ wreaths, which will be transported and placed by volunteers on gravestones at Arlington National Cemetery as part of National Wreaths Across America Day in December.

• Clarios LLC, an advanced energy storage solutions provider, named

Averitt its LTL Carrier of the Year, recognizing outstanding service and reliability in the logistics and transportation sector.

• ODW Logistics supported the recent Pelotonia Ride Weekend with inventory management and the transportation of bicycles for dedicated riders. Since 2009, Pelotonia has raised more than $295 million for innovative cancer research. > MILESTONE

• The Business Intelligence Group recognized Jarrett as a SAMMY Award winner in the area of technology use in marketing strategy.

n J.B. Hunt Transport Services surpassed 50,000 autonomous

• The U.S. Great Lakes St. Lawrence Seaway Development Corporation presented the Port of Green Bay and the Illinois International Port

long-haul trucking miles, using Kodiak technology to haul Bridgestone passenger car tires between South Carolina and Dallas. Since the Bridgestone route kicked off in January 2024, the autonomous route has been driven with no accidents and achieved 100% on-time pickup and delivery. n Loadsmart, whose logistics offerings span planning, optimization, and execution to gate, yard, and dock solutions, is celebrating its 10th anniversary. n DeSpir Logistics, a specialized transportation logistics provider for high-value, high-risk and temperature- controlled cargo, is celebrating its 10th anniversary.

District with the Robert J. Lewis Pacesetter Award, which recognizes the achievements of U.S. ports whose activities result in increasing international tonnage shipped through the St. Lawrence Seaway in comparison with the previous year.

12 Inbound Logistics • September 2024

NOTED

> SEALED DEALS

> M&A

n The Kenan Advantage Group (KAG) has acquired TransVac, a Abbeville, Louisiana-based company that specializes in the transportation of chemicals, water treatment products, and plastic additives.

n NTG Germany, a fully owned subsidiary of NTG Nordic Transport Group A/S, has signed an agreement to acquire 100% of the shares in Schmalz+Schön Holding GmbH , which specializes in road and logistics services. SSH operates from its headquarters in Stuttgart and 27 additional sites across Germany. n Global port operator PSA Baltics N.V. signed an agreement to acquire an 85% majority stake in Loconi International S.A., one of Poland’s leading intermodal operators, from the publicly traded Polish freight forwarder ATC Cargo S.A. This strategic move aims to develop new rail products to support PSA’s European container hubs. n C.H. Robinson Worldwide sold its European Surface Transportation business to sennder Technologies GmbH, a digital road freight forwarder in Europe. n Groendyke Transport will acquire all the tank truck assets of Linden Bulk Transportation from Depot Connect International, a tank container services provider. The acquisition expands Groendyke’s footprint to Ohio, Pennsylvania, and New Jersey, and solidifies its presence in the Gulf. n Carrier Global Corporation, on behalf of its Sensitech business, completed its acquisition of the Monitoring Solutions business of Berlinger & Co. AG, a Swiss family-owned company that specializes in solutions for monitoring temperature- sensitive goods in the pharmaceutical and life science, clinical trial, and global health segments.

• Intralogistics group Mecalux has equipped pet supplies provider Moderna Products’ plant in Belgium with an automated warehouse connected to production.

• Bioelements Group will supply its compostable, biobased, and biodegradable

packaging to Multi X. The salmon farming company will replace all of the bags it uses for packaging fresh fillets with Bioelements’ bioplastic containers. • Honeylove selected Inspectorio to modernize its supply chain as its brand grows. The brand will now rely on Inspectorio’s advanced analytics, AI capabilities, and support network to strengthen and modernize its production chain. • Nynas AB, a manufacturer and supplier of specialty oil products and services, is using Descartes’ cloud-based transportation management system to automate communications throughout the customer order lifecycle.

> UP THE CHAIN

n Symbotic Inc. acquired substantially all of the assets of Veo Robotics, which offers intelligent safeguarding for

DSG appointed Dan Klepack as its chief supply chain officer. In this newly created role, Klepack will be responsible for driving supply chain optimization, enhancing efficiency, and delivering an exceptional customer experience across DSG’s extensive network.

industrial robots. By integrating Veo's FreeMove solution into its robotic warehouse automation system, Symbotic expects to increase productivity with more dynamic, flexible human-machine collaboration.

September 2024 • Inbound Logistics 13

TAKEAWAYS Shaping the Future of the Global Supply Chain

SUPPLY CHAIN SUSTAINABILITY TRENDS Q&A with Jeff Pepperworth, President & CEO, iGPS Logistics Sustainability has been an industry buzzword for a while now. What are some new/current trends you are seeing? Even though sustainability is not a new initiative, we see the adoption of greener supply chain practices on a much larger scale. Previously, bigger-name brands were the main players

SURVEY SAYS: IT’S RISK MANAGEMENT OVER COST A shift is afoot when it comes to selecting and locating global supply chain networks. Instead of focusing solely on lowest-cost strategies, leaders are emphasizing building resilience, agility, and flexibility into their supply chains, shows new research from Gartner. The data shows that these risk management considerations have displaced cost-efficiency as the top drivers of network changes. Here are some key takeaways from the global survey: • 73% of companies have added or removed production locations from their supply chain networks in the past two years. • Of those that have made changes in the past two years, 90% report that they have met or exceeded the expected benefits of the change. • Despite the early success of these network shifts, 96% of respondents cite challenges with operating in new locations; operational and logistics costs are cited most often.

advocating for the implementation of more eco-friendly practices. But because big retailers have been pushing their suppliers to adopt sustainability programs, we now see a ripple effect, and more secondary and tertiary players are putting environmental responsibility at the forefront. Are there any buzzy sustainability efforts companies should be more aware of, such as new developments with AI and other tech? While route-planning technology has been around for a while, it is certainly becoming more advanced, and we have more electronic “eyes” on our roadways than ever to help shippers identify ways to optimize. AI is also creating dimensional references to build packaging that is specific to items being shipped—cutting down on dunnage and wasted space—and ensuring that boxes on pallets are cubed more efficiently, so more products can be transported at once. This all adds up to reduced greenhouse gas emissions in the atmosphere. The market for green bonds and other sustainability bonds hit a growth milestone last year. What can you tell us about these bonds and what they mean for supply chain and environmental sustainability? When you look at the investment marketplace, it’s clear that investors— including institutional investors, angel investors, and VC firms—are increasingly looking to include sustainable investment vehicles as part of their portfolios. Not all consumers are investors, but all investors are consumers. They are looking to invest in sustainable brands in the same way that consumers are looking to do business with sustainable brands. Here at iGPS, we have multiple participants in our own green bonds, and we expect that the industry will continue to move in this direction. How can the supply chain sector as a whole help to get sustainability moving forward in a stronger direction? It comes down to unification. In what ways can we unify the supply chain sector around common sustainability goals? For example, many years ago the grocery industry standardized the pallet. It was recognized that a consistent asset of specific dimensions was necessary to ensure that all forklifts and warehouse racking could handle pallets. So, what else can we unify? Can we make water packaging or egg cartons consistent so that these products have the same density and can be transported more efficiently, without impacting the spirit of competition? If we look at the supply chain holistically and discover new ways to adopt common standards, we can move toward an even greener and healthier future.

• A shortage of factory workers was a more

common challenge in North America compared to all other regions.

14 Inbound Logistics • September 2024

TAKEAWAYS

With less than half of 2024 remaining, supply chain professionals are looking back at what has already transpired—and what issues are left to contend with before the year draws to a close. Thus far, the supply chain has faced several significant challenges with lasting global implications , including the effects of ongoing geopolitical tensions and the threat of labor strikes in the United States, Canada, and Europe. According to FTI Consulting’s Q2 2024 Transportation & Logistics Industry Update , the transportation and logistics market saw a surge in ocean freight prices and growing demand for air freight due to longer transit times caused by Red Sea shipping disruptions and congestion in Asian ports. However, an increase in capacity and the opening of new sea routes are expected to reduce freight prices in 2025 despite current T&L pricing pressures. TAILORED LOGISTICS SOLUTIONS FREIGHT & CAPACITY FORECAST

Here’s a roundup of the report’s findings from Q2 2024 and some upcoming predictions: Global Freight Market Outlook The global freight market shows steady growth in volume, reflected by an increase in the numnber of M&A deals and rising demand for air freight forwarding services.

- Increased volumes coupled with disruptions in major shipping routes have led to significant increases in demand for air and ocean freight in 2Q24. - Hostile developments in the Red Sea have presented manifold challenges for global trade , ranging from extended transit durations and capacity limitations to elevated expenses and increased uncertainty. - General cargo has shown faster growth than specialized products in 2024, due to increasing demand from ecommerce and disruptions in the container shipping sector. - Air cargo is set for a strong second half , driven by sustained ecommerce growth, increasing ocean shipping costs, and disruptions in the Red Sea. - Entering 2024, shippers expected a buyer’s market for ocean freight, with carriers adding capacity in 2023 and planning to do so again. Instead, global geopolitical events and high demand across trade lanes in 2Q24 have reduced available capacity and increased shipping rates . - Due to the necessity of rerouting via the Cape of Good Hope, new capacity added in 2023 and early 2024 hasn’t been sufficient to meet growing demand .

Source: FTI Consulting

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September 2024 • Inbound Logistics 15

TAKEAWAYS

manufacturing projects envisioned under IRA and CHIPS have stalled, according to a Financial Times investigation. The slowdown has created uncertainty around the demand for logistics space. Forty percent of the largest U.S. manufacturing investments announced during the first year of President Biden’s industrial and climate policies have been delayed or paused, the Times found. A total of $84 billion of those projects have been delayed for at least two months and some have been paused indefinitely. Deteriorating market conditions, slowing demand, and lack of policy certainty were cited as reasons for the delays. Across the nation, large projects on hold include Enel’s $1 billion solar panel factory in Oklahoma, LG Energy Solution’s $2.3 billion battery storage facility in Arizona, and a $1.3 billion lithium-ion refinery in South Carolina, according to the report. The tax credits and grants stretch into 2032, but inflation, labor shortages, and supply chain challenges are all contributing to delays in achieving project milestones, which are key to unlocking funding.

Syfan_Publisher_NewDesign.pdf 1 8/14/24 12:16 PM The bipartisan Inflation Reduction Act (IRA) and CHIPS and Science Act, both passed in 2022, generated buzz in the supply chain sector for a predicted resurgence of manufacturing activity that would yield increased demand for logistics services and investments. However, two years later, some enthusiasm is waning as nearly half of the IRA/CHIPS LOGISTICS PROJECTS STALLED

16 Inbound Logistics • September 2024

TAKEAWAYS

export competitiveness, but also introduces new challenges for foreign direct investment. • Trade dominance: The competitiveness of Mexican commerce is on display as trade volumes through Laredo, Texas have been consistently rising, surpassing traditionally dominant international ports. For 15 of the past 16 months, Laredo has seen higher throughput than the Port of LA/Long Beach, which once processed nearly 50% of all foreign imports. • Labor: Spurred by rising labor costs in Asia and ongoing trade disputes, Mexico continues to grow as a manufacturing and commerce hub, both with the United States and globally. Imports from Asia into Mexico have risen, pointing to the growth in Mexican ports as a way to work around U.S. tariffs on Asian goods. • Safety: The new administration under President- elect Claudia Sheinbaum vows to improve security on Mexican highways, responding to long-standing concerns. This includes increased law enforcement presence, which should have positive impacts on future trade volumes and safety.

Cross-border commerce and nearshoring have been a growing focus for many global shippers over the past few years—and events resulting from Mexico’s historic election in June 2024 seem to indicate that trend will continue. That’s the consensus from Redwood Mexico’s Q3 Cross- Border Index . The election, which saw the country choose its first female president amid unprecedented levels of violence, has led to notable shifts that impact the U.S.-Mexico trade landscape, including the peso’s devaluation, shifting market dynamics, and an increased call for security. The report highlights these shifting trends: • Currency complexity: The peso’s devaluation has provided relief for Mexican truckers and boosted ALL EYES ON MEXICO

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September 2024 • Inbound Logistics 17

TAKEAWAYS

SUPPLY CHAIN VC UPDATE Could the relative calm in supply chains in 2023 and 2024 versus the major disruptions in 2021 and 2022 be dampening investor enthusiasm for supply chain-related deals? A Crunchbase analysis indicates as much. Crunchbase data shows total venture funding to supply chain startups has yet to hit $2 billion this year—a pace that, if continued, will result in a 79% drop from the all-time high set in 2021 of $14.7 billion. At its current rate, the total is likely to fall short of the $3.3 billion raised in 2023. There are a few exceptions. Logistics giant Flexport—which less than 3 years ago hit a peak valuation of $8 billion—raised $260 million from partner Shopify in January. And Altana AI, a company that “empowers governments, logistics providers, and enterprises with an intelligent, dynamic map of the global supply chain” nabbed $200 million in Series C funding in July. Otherwise, deal flow in the supply chain sector has declined dramatically, with Crunchbase predicting only slightly more than 300 deals will close this year—a 55% drop from 2021’s 711 and a decrease of more than nearly 150 rounds from last year. Crunchbase notes that venture funding has been down in nearly every sector since 2021, but the decrease in supply chain- related funding has been especially sharp.

ARE YOU UP TO SPEED WITH THE LATEST REGULATIONS? The U.S. supply chain, transportation, and logistics sector is continuously evolving, influenced by new technologies, global trade dynamics, and changing consumer expectations. To keep pace, U.S. government agencies regularly update and introduce regulations that impact how businesses operate in these critical areas. Here is an overview of some of the most significant new and updated regs shippers need to stay abreast of. Federal Motor Carrier Safety Administration (FMCSA) FMCSA, the key agency responsible for regulating commercial motor vehicle safety in the United States, announced four recent updates to address the evolving needs of the trucking industry. 1. Automatic Emergency Braking (AEB) Systems Rule: Last year, FMCSA, in collaboration with the National Highway Traffic Safety Administration (NHTSA), proposed a rule that would require automatic emergency braking systems in U.S. light vehicles and trucks. The rule was finalized in May 2024 and goes into effect in September 2029. 2. Expansion of Drug and Alcohol Clearinghouse Requirements: As of 2023, all state driver licensing agencies are required to use the Clearinghouse to check whether a driver is prohibited from operating a commercial motor vehicle due to drug or alcohol violations before issuing, renewing, or upgrading a commercial driver’s license. 3. Electronic CDL Information Exchange: As of August 2024, states are required to implement an all-electronic system for exchanging commercial driver’s license (CDL) information, including convictions and disqualifications, to streamline and improve the accuracy of CDL record-keeping. 4. Hour of Service (HOS) Updates for Agricultural and Livestock Haulers: FMCSA updated the HOS regulations in 2023 specifically for agricultural and livestock haulers to provide more flexibility for haulers during planting and harvesting seasons while maintaining safety standards.

SUPPLY CHAIN MANAGEMENT VENTURE FUNDING

Source: Crunchbase

18 Inbound Logistics • September 2024

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