JANUARY 2023
2023 LOGISTICS PLANNER
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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
XTRA XMAS Small business owners say they are willing to go to great lengths to ensure a successful holiday season, according to DHL’s Holiday Survey of SMBs. 44% say they would volunteer
‘THE YETIS ARE STILL OUT THERE’ High-end Yeti coolers continue to wash up on shores from Seattle to Alaska after a freighter spilled shipping containers in rough seas in October 2022. Hundreds of the luxury coolers, which range from $250 to $750 each, have been washing onto beaches with moderate wear on the outside, but in near-mint condition inside, The Wall Street Journal reports. “The Yetis are still out there,” oceanographer Curtis Ebbesmeyer, who studies how ocean debris travels on currents, told The Wall Street Journal.
THAT’S A LOTTA MEATBALLS… A tractor-trailer crash spilled 40,000 pounds of frozen, packaged meatballs on Interstate 95 in Greensville County, Virginia, in mid-December 2022. The driver was charged with failing to obey a highway marking.
as Santa at the mall if it meant their business would exceed their holiday sales goals. 21% would live in the Grinch’s cave. 21% would spend Christmas week in the airport. 14% would dress as an elf for a year. PAY DAY DISMAY Economic pressures are intensifying for job seekers and professionals, as inflation rates and fears of a recession grow. According to Remote.co’s Work & Financial Wellness Report: • 80% of respondents say their current salary is not keeping up with inflation. • 92% report that inflation and recession concerns have a ected their career and financial choices. Specifically: • 47% have either found or started looking for a higher- paying job because of these concerns. • Almost one-third ( 31% ) have taken on a side job or started freelancing. • 32% are “extremely concerned” about their job security in the next three months with another 31% “somewhat concerned.” “The coolers will keep circling the world. You’ll be getting reports of people finding Yetis for the next 30 years.”
…BUT NOT A LOTTA PASTA
Supply chain issues prompted Ronzoni to announce it would stop producing Pastina, its tiny, star-shaped pasta brand. “Unfortunately, our long-term supplier informed us that they would no longer be making Ronzoni Pastina as of January 2023,” the company said.
January 2023 • Inbound Logistics 1
CONTENTS 94 JANUARY 2023 | VOL. 43 | NO. 1
128 CORE CARRIERS OR LOAD BOARDS? STRIKE THE RIGHT BALANCE Finding capacity via core carriers or load boards are both solid options. Here’s how to weigh the advantages of using core carriers against the necessity of turning to load boards and the spot market. 136 WAREHOUSE SAFETY FIRST Keeping employees safe is every warehouse operator’s responsibility. Collision-avoidance systems, wearable solutions to improve ergonomic safety, and virtual reality training programs help reduce the risks.
INNOVATION TAKES A TURN AT THE WHEEL When it comes to meeting supply chain goals, many companies want to take a breather and buy a vowel. But with some innovative thinking, they can boost visibility, increase fulfillment operation eciency, and streamline transportation, without losing a turn.
114 3PLs DISCOVER
VALUE FOR SHIPPERS Third-party logistics providers dierentiate themselves by
providing high levels of service and communication along with oering the latest technology. 122 U.S. PORTS: NEW AND NOTABLE DEVELOPMENTS At a time when staying the course could be considered an achievement, ports across the country are making significant advancements in their capabilities to serve shippers.
102 E-COMMERCE EVOLVES E-commerce companies carve out success through a unified approach to omnichannel order management and distribution, along with a focus on demand planning. 108 DELIVERING FOR CUSTOMERS FROM THE LAST MILE TO THE FINAL INCH Whether the last mile of delivery is actually one mile or several hundred miles, shippers are meeting customer expectations and reducing costs by building carrier relationships and leveraging technology.
2 Inbound Logistics • January 2023
CONTENTS JANUARY 2023 | VOL. 43 | NO. 1
172 THE BEST STRATEGIES FOR E-FULFILLMENT SUCCESS E-commerce fulfillment gets a lift from inventory management, variability strategies, and innovative
190 CARRIER SUCCESS STORIES The road to a successful partnership with your transportation provider can be long. But with the right mix of dedicated service, innovative strategies, advanced technology, and old-fashioned work ethic, carriers go above and beyond to meet shippers’ needs. 196 COLD CHAIN CHOICES Flowers, pharma, chemicals, and other perishable products require temperature-control solutions with various degrees of diculty.
technology. 178 OVERCOMING GLOBAL TRADE BARRIERS
Lockdowns, land wars, and rising costs had companies scrambling to keep sourcing intact in 2022. Is reshoring the key to unlocking international trade challenges? 184 INTERMODAL OR TRUCK? FIVE FACTORS TO CONSIDER 2022’s capacity crunch is in the rearview mirror, but it’s never too early to plan for the next upcycle. Here’s how to choose your optimal ground transportation mode.
144 COMPETING WITH THE BIG DOGS
Supply chain technologies unleash the power that levels the playing field and lets small and mid-sized businesses scale. 150 DISRUPTION-BUSTING MOVES FOR 2023 AND BEYOND During a downpour of disruptions, these maneuvers can ensure your supply chain can withstand volatility and even thrive through upheaval and inclement conditions. 164 E-commerce companies are reworking the twists and turns in their distribution networks to get closer to their customers and speed delivery times by shortening the last mile. RETAILERS COME CLOSER TO HOME
4 Inbound Logistics • January 2023
CONTENTS JANUARY 2023 | VOL. 43 | NO. 1
253 NOW HEAR THIS! Here are 12 Inbound Logistics podcast episodes that will keep you updated on the latest supply chain, transportation, and logistics trends. 256 MOST READ ARTICLES OF 2022 The challenges of the past few years did not ease up in 2022. Here are some articles covering practical strategies that readers turned to for advice last year. 273 SPOTLIGHT ON THE LEADERS IN LOGISTICS
214 PLAN AHEAD & GET ORGANIZED FOR 2023 Supply chain leaders share
predictions, tips, and notes to help you tackle the business challenges ahead.
202 TRANSPORTATION STRATEGIES TO OFFSET INFLATION
Business professionals have had a tough time navigating fluctuating logistics costs over the past two years. But hold on! There are ways to keep your balance while negotiating price increases. 208 SITE SELECTION: HOW TO OPTIMIZE YOUR DISTRIBUTION NETWORK In the search to map out the best location for your next distribution center, anticipating what lies on the road ahead is as vital as understanding your company’s immediate priorities and needs.
228 WINTER READING GUIDE It’s cold outside. Why not stay inside and catch up on the latest literature that can help boost your supply chain skillset?
6 Inbound Logistics • January 2023
CONTENTS JANUARY 2023 | VOL. 43 | NO. 1
GOOD QUESTION What’s one supply chain misnomer? What would be a better term?
12
22
60 SITE SELECTION U.S. manufacturing’s year of opportunity: what to expect in 2023 62 LEAN SUPPLY CHAIN The supply chain: It’s alive! It’s alive! 64 SOURCING The costly consequences of bad data 66 SC SECURITY How to avoid paying ransom 68 SC CAPACITY 3 ways digital transformation enhances capacity 70 RISKS & REWARDS Managing supplier risk: It’s all about the information 72 IT MATTERS Is your business ready for intelligent document processing? 74 RETAIL RETHINK Automation: from benefit to necessity 76 SC VISIBILITY Gaining better visibility: where to start 78 DC OPERATIONS 3 top emerging automated solutions 80 VIEWPOINT Resolving the driver retention crisis
INFOCUS 1 INFO SNACKS 22 VERTICAL FOCUS: PET SUPPLIES 30 NOTED 34 TAKEAWAYS 246 IN BRIEF
45 SPONSORED SOLVED Custom TMS and freight management solution provides industrial distributor with full supply chain visibility...46 Powering up a better supply chain...47 Visionary 3PL leadership turns around a production site for award-winning performance...48 That’s the spirit! Partnership brings supply chain visibility into the mix...49 Holman Logistics uses artificial intelligence to increase forklift safety...50 A good 3PL partnership starts with a strong systems integration...51 How Verst Logistics powers agility and scale utilizing cleo integration cloud...52 55 SPONSORED THOUGHT LEADERS WMS ROI: is a new WMS worth the investment?...56 Optimizing customer service and corporate value...57 How parcel shippers can prepare for 2023 and beyond...58 88 SPONSORED Uncovering opportunities in expedited, oered by Candor.
INSIGHT 10 CHECKING IN 2023 inventory. Is it too much? Too little? 12 GOOD QUESTION What’s one supply chain misnomer? What’s a better term? 16 DIALOG 18 10 TIPS Make your supply chain data work for you 20 WHAT’S THE WORD? 42 SPONSORED KNOWLEDGE BASE What does the post-pandemic fulfillment model look like?...42 If you are struggling with freight delivering on-time, partner with a quality 3PL freight provider...43
INPRACTICE 26 READER PROFILE Gary Harber manages a fleet of vehicles along with several warehouse, driver, and oce teams and oversees product shipments for Milgard Windows and Doors, a residential window and door manufacturer based in Tacoma, Washington. 28 LEADERSHIP Bryan Langston, president, Dot Transportation, focuses on getting his company back up to speed after the pandemic by emphasizing driver safety, training, and retention while opening a new distribution center. 237 IT TOOLKIT Furniture retailer Oliver Space tackles supply chain challenges that include handling and tracking returned items by installing a warehouse management system. 241 CASEBOOK As Tiger Tail USA grew from its founding in 2016, it needed an ecient way to package and ship its flagship products. The solution? A partnership with Pacejet by 3Gtms for multicarrier packing and shipping services. .
34
82 SC RESILIENCY Get closer to the action with onshoring 84 SMART MOVES Solving the talent crisis
86 GREEN LANDSCAPE 5 ways to strengthen and future-proof your supply chain
INFO 244 SUPPLY CHAIN INSIGHTS 259 CALENDAR 262 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, 5 Penn Plaza, NY, NY 10001. Periodicals postage paid at New York, NY, and additional mailing oces. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. POSTMASTER SEND ADDRESS CHANGES TO: Inbound Logistics, 5 Penn Plaza, New York, NY 10001
8 Inbound Logistics • January 2023
Maximizing customer value through continuous improvement and innovation, CJ Logistics provides customers visibility to supply chain data to help them improve, optimize and make informed decisions. Data is transformed into intelligence. Maximizing customer value through continuous improvement and innovation, CJ Logistics provides customers visibility to supply chain data to help them improve, optimize and make informed decisions. Data is transformed into intelligence.
WAREHOUSING TRANSPORTATION FREIGHT FORWARDING SUPPLY CHAIN CONSULTING WAREHOUSING TRANSPORTATION FREIGHT FORWARDING SUPPLY CHAIN CONSULTING
CHECKINGIN 2023 Inventory… Too Much? Too Little?
Vol. 43, No. 1 January 2023 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
STAFF PUBLISHER Keith G. Biondo
publisher@inboundlogistics.com
I nventory. That was the theme unifying both attendees and exhibitors at the 2023 National Retail Federation (NRF) convention in New York City. More precisely, everyone I spoke to was interested in load balancing
EDITOR Felecia J. Stratton
editor@inboundlogistics.com
SENIOR EDITOR Katrina C. Arabe
karabe@inboundlogistics.com
MANAGING EDITOR Robert Fee
rfee@inboundlogistics.com
inventory to serve new retail ful llment approaches striving to catch up with the blindingly fast evolution in consumer buying habits. For retail locations, e-commerce, multichannel, and especially omnichannel sales, the question is the same: How do we match demand signals to supply without over-investing in inventory or, on the other hand, under-serving and losing customers? Recent horror stories abound, such as the toy retailers sitting on millions of unsold items from holiday sales thanks to in ation, which dinged gift- givers’ disposable income. Kids’ toy preferences have changed too, driven by unplanned demand explosions brought to you by TikTok and YouTube in uencers. Think Cocomelon and Mr. Beast. In fashion, TikTok and Instagram in uencers drive immediate global trends that turn sourcing and inventory decisions into a cold sweats nightmare. In a time of shrinking margins the challenge is ampli ed. Overload to anticipate customer demand or take a bottom-line hit? At NRF, exhibitors offered many solutions to that question, largely driven by technology. For example, suppose you had a slow-selling product at one location with too much inventory on hand. Wouldn’t it be wonderful to poll all your other locations and channels via AI and redeploy that product to your locations with more demand? That is possible. What about over-reliance on historical sales data to predict future demand in volatile markets? There’s a solution that sits on top of historical data and seeks to match that against trends outside of that outdated dataset. And what happens if you get it wrong? A reputation for poor returns management can do long-term damage to sales and your brand as repeated bad experiences drive consumers elsewhere. Additionally, the cost of returns management is rising due to higher shipping and labor costs, and in ation. But several new returns management solutions, both APIs and SaaS, reduce customer service friction and shield the balance sheet at the same time by maintaining customer retention. Paying attention to circular demand pays dividends. Using the many available innovative solutions as part of your journey to evolving into a demand-driven enterprise is one sure way to answer the question of 2023 inventory: Too much, too little, or just right?
CONTRIBUTING EDITORS June Allan Corrigan • Merrill Douglas • Thomas Gresham Karen M. Kroll • Helen Mann • Richard Osborne Amy Roach • Gary Wollenhaupt CREATIVE DIRECTOR Jeof Vita jvita@inboundlogistics.com DESIGNER Nicole Estep nicole@inboundlogistics.com DIGITAL DESIGN MANAGER Amy Palmisano apalmisano@inboundlogistics.com PUBLICATION MANAGER Sonia Casiano sonia@inboundlogistics.com CIRCULATION DIRECTOR Carolyn Smolin
Keith Biondo, Publisher
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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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10 Inbound Logistics • January 2023
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GOODQUESTION Readers Weigh In
What’s one supply chain misnomer? What would be a better term?
S c a ot. Some people hear “automation” and think people are being made obsolete. But when we add automation, we also create new roles for workers to support and drive implementation. Automation does not replace human talent; it gives organizations an opportunity to develop workers’ skills and accelerate their success. Maybe we should call it SUPPLY CHAIN AUGMENTATION. The supply chain is becoming more automated, but it’s augmented with talented workers who keep it moving. –Jonathan Park SVP of Supply Chain, iGPS Logistics L me. It can mean so many dierent things. The last mile can be delivery to a house, a store, a construction site, etc. Using more specific language like RESIDENTIAL DELIVERY based on the type of delivery is much more clarifying.
Don’t Call It “Driver Shortage”
The problem is not a lack of drivers. The problem is drivers do not want to stay. What would be a better term? Driver retention.
Solution: Redesign the job. Create a job that a driver wants to keep. This means re-thinking the position and creating a job that is substantially dierent from the other x million open driving jobs. But no, I will be hearing weeping, wailing, gnashing of teeth about the “driver shortage” for the next several years, all while oering the same basic job that has not changed in the past 50+ years. –Terry Clear While the number of drivers is shrinking, there are ways to attract enough for your fleet. A better phrase would be the quality job deficit. By oering fair pay, work-life balance, and transparent communication, companies can fill their trucks with qualified drivers. –Adam Putzer Director of Sales for Permanent Transportation Logistics Services, CPC Logistics
–Daniel Sokolovsky CEO and Co-Founder, WARP
S c o z i is a common misnomer as optimization is about doing the best with what you have, but you must also focus on improving what you have so it aligns better with corporate objectives. Instead, the phrase DYNAMIC ALIGNMENT is an approach that accounts for holistic supply chain management. –Troy Prothero SVP, Product Management Supply Chain Solutions, SymphonyAI Retail CPG Di l f fr r have exploded in popularity for good reason. Digitizing processes to provide
better, faster, leaner ways for customers to interact with their freight forwarder is here to stay. However, technology will never entirely replace the human element, and for that reason, I prefer the term DIGITIZED FREIGHT FORWARDER. –Martyn Verhaegen CTO Digital Forwarding, Magaya A r c E. APIs are a type of EDI, not a replacement for EDI. APIs are electronic data interchange between browser interfaces and/or separate servers. APIs are wonderful and versatile and can complement or replace older, more traditional
system-to-system data exchange such as FTP. –Bryn Heimbeck President/CEO, Trade Tech Inc. The concept of waiting for supply chain conditions to r u t nl. By nature, supply chains are complex and depend on so many dierent variables that DISRUPTION AND ULTIMATELY CHAOS ARE THE NORMAL conditions. A simple, stable, and predictable network are the actual outliers. –Mike Williams Exec VP, Commercial & Logistics, ContainerPort Group
12 Inbound Logistics • January 2023
GOODQUESTION
What’s one supply chain misnomer and what would be a better term?
Let’s Rethink “Supply Chain”
D il tnt . “Transformation” implies one and done. Becoming a digital-centric business is an ongoing process and is less about technology and more about how people leverage technology and data to optimize employee and customer experiences. A better term is DIGITAL JOURNEY. –Kristi Montgomery
Misconception: A supply chain is just the portion of a company’s logistical network from its immediate suppliers to its factory door. It’s the entire network from a company’s lowest-tier suppliers through its factories, distribution network, all the way to its customers. A better term is supply chain ecosystem . –Dave DeFreitas CRO, TADA The chain analogy implies logistics is a linear process, but this is not the case as supply chains have various points of interaction. It would be fitting if companies only sourced material from one supplier and sold products to one buyer. A more appropriate term would be supply network .
VP of Innovation, Research & Development, Kenco Group
F spn is a term used to overcome purchasing barriers. It creates the illusion of savings or cost aversion while promoting additional spending if there is a minimum spend threshold. It’s more persuasive than saying “ SHIPPING IS INCLUDED somewhere in this purchase.” –Micheal McDonagh President, Parcel, AFS Logistics J-i-t e = no inventory. JIT is often misunderstood to mean having no inventory on hand. In reality, JIT refers to having the right amount of inventory at the right time. In recent years, however, the concept has shifted toward JUST-IN-CASE inventory due to supply chain disruptions. –Perry Falk EVP, Carrier Operations, Nolan Transportation Group
–Brian Kava CEO, PICKUP
Have a great answer to a good question? Be sure to participate next month. We want to know: What’s the biggest supply chain takeaway you’ve learned from a recent peak season? We’ll publish some answers. Tell us at editorial@inboundlogistics.com or tweet us @ILMAGAZINE #ILGOODQUESTION In many cases, “supply chain” is overly simplistic compared to the reality of the way the products get to the consumer and the way that reverse logistics is played out whether through returns, or other full product lifecycle management requirements. Value chain network is a broader term that can include many of the variations that add value to the consumer and producer’s overall experience. –Mark Wheeler Director, Supply Chain Solutions, Zebra Technologies This business is more than drivers and dock workers; each load has countless stakeholders. Shippers, carriers, technology and data teams, third-party service providers—the list goes on and on. Inventory optimization and transportation might more eectively encompass today’s massive supply chain ecosystem. –Blair Blake VP Carrier Strategy, Arrive Logistics I’d rather call it a supply web . –Dale Young Vice President, Warehousing & Distribution, World Distribution Services LLC It’s more so a supply network that is built and sustained by the networking capabilities of logistics experts and driven by supply and demand. –LeeAnne Howe HR Manager, TA Services
The term si because it suggests a purely transactional
relationship with the buyer. To become more resilient, organizations need to see their suppliers as PARTNERS, as the boundary between companies and their supply chains has become increasingly porous.
–Tony Pelli Practice Director, Security and Resilience, BSI
E-c r is dated—coined when buying something on the internet was a novel idea, but today, we just call that COMMERCE. When we think about customers in a connected commerce system, meeting them where they want to be met, we can implement a digitally connected supply chain to support the way customers shop.
–Steve Denton CEO, Ware2Go
14 Inbound Logistics • January 2023
GAIN X-RAY VISION GAIN GROUND You weren’t born with superpowers. But when you work with Penske, our ClearChain® technology suite allows us to see all of your inventory, across every distribution point, all in one place. So you gain total visibility.
DIALOG @ILMagazine [ INSIGHT ]
Want to join the conversation? FOLLOW US: linkedin.com/company/inbound-logistics facebook.com/InboundLogistics twitter.com/ILMagazine youtube.com/user/InboundLogistics inboundlogistics.com/podcast DROP US A LINE: editorial@inboundlogistics.com
PLENTY TO BITE INTO
FOOD FOR THOUGHT
Re. How to Ace Your Supply Chain Career bit.ly/career_feature_IL1222
Thank you all for the excellent content you provide in each month’s issue. I nd the articles to be timely, compelling, and well researched. It is hard to nd trade magazines of substance. Inbound Logistics is de nitely one that addresses meaty issues. I’m also impressed that in each issue it is not only one article that stands out but multiple articles that hold my attention and gets me to think deeply on the subject at hand. I regularly share these articles in my monthly best practices and new ideas meeting with staff. Thanks for your hard work. –Joseph Thomas, NIGP-CPP, CPSM, CPSD, C.P.M. Purchasing Director Sedgwick County Purchasing Wichita, KS
Enhance your understanding of the entire supply chain ecosystem—whether you’re in procurement, sales, logistics, or the nancing side. While it’s imperative to maintain and leverage your core competencies and technical skills in one or more of these areas, it will serve you well, both in your current role and future opportunities, if you understand the dependencies of the ecosystem and how it holistically operates. Finally, have the courage to take calculated personal risks in exploring career opportunities outside of your current area. –Dan Son Head of Global Banking, U.S. Bank Re. Attacks on Energy Attack You Very good column in December. You are correctly challenging the new kind of “conventional wisdom” that isn’t wisdom at all; it is wishful thinking. I could go on explaining but you already get it. So I am writing to say job well done. (Again. As usual). –Danny R. Schnautz Clark Freight Lines Inspiring message. As an architect, inventor, and IP developer, I am concerned about the lack of innovation, vision, and preparation we invest in our future economy. –Herb Bennett via email by IL Publisher Keith Biondo bit.ly/Checking_In_IL1222
Frank Mullens @FrankMullens Tasty steak salad with @ILMagazine’s Disruption Mitigation: 5 Ways to Prepare for Supply Chain Disruptions “If we’ve learned anything during the past two years, it has been about market disruptions—even to the point of the disruptions being disrupted.” bit.ly/disruption_mitigation_IL922
Fast TAKE
Re. E-commerce Approaches for 2023
While valuing transparency with customers is always advisable for e-commerce vendors, industry instability shifts it from a want to a need. If you, as a retailer, know shipping
delays might be a pervasive problem in the coming months, the only way to insulate yourself from backlash is explaining the situation clearly to your customers so they can use that knowledge to act in their best interest. –Ted Rogers, Chief Revenue Officer, Digital River
16 Inbound Logistics • January 2023
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10 TIPS
The term “big data” describes harnessing information from disparate systems and situating it in one place for deep analysis. Some companies thought this was a fad, but supply chain data is the lifeblood of your business. Here’s how to make it work for you. Make Your Supply Chain Data Work for You
1 YOU CAN’T MANAGE
can be combined with transportation routes for a better estimated delivery time, which improves customer satisfaction. 9 MITIGATE RISK AND DISRUPTION. Due to the pandemic, the term “supply chain” is now both recognizable and meaningful to the average person. Using structured and unstructured data together—coupled with world events such as pandemics, tsunamis, nuclear meltdowns, or war—can severely disrupt supply chains directly and indirectly. Critical business functions, including determining points of manufacture and distribution along with levels of inventory, are all aected. The good news is that harnessing all the available data in concert with supply chain optimization software and relevant expertise can mitigate risk for your company.
WHAT YOU CAN’T MEASURE. In today’s world, you can’t measure meaningful business metrics without data. In our super-connected landscape, data represents the all-important voice of the customer. You need data to measure the success of your customer and supplier relationships.
2 NOT ALL DATA COMES FROM YOUR ERP. Consider data from user reviews, surveys, customer behavior, industry news, and social media posts. Harnessing big data from both structured and unstructured sources provides you with the information needed to improve your end-to-end supply chain. 3 GAIN INSIGHT FROM UNSTRUCTURED DATA. Suppose a celebrity sings your product’s praises on national television and demand goes through the roof. By monitoring and incorporating your social media sources into your data analysis, you’ll be better situated to reposition inventory on short notice. 4 CREATE SEAMLESS DATA EXCHANGES. Disparate systems need to seamlessly exchange structured data, but these systems are often still siloed. Use APIs and cloud platform technology to create seamless data exchanges.
5 LAYER IN AI AND ML FOR DEEPER INSIGHTS. Artificial intelligence (AI) and machine learning (ML) provide opportunities to “learn” from your data to deliver predictive insights. You’ll gain advantages that include prescriptive ideas for optimal outcomes. 6 CLEAN AND MAINTAIN YOUR DATA. Insights derived for your supply chain are only as good as the data you use. Incorporate data cleansing processes to remove entries that do not belong. Eliminate duplicate data, which occurs when you combine data sets from multiple places. Fix structural errors that may arise when data is transferred from one place to another.
7 USE A DATA-DRIVEN APPROACH. Strategically use your data to better manage production, distribution, and inventory in real time. A data-driven approach empowers faster and more informed decision-making. This approach improves your supply chain’s ability to react to sudden changes, such as moving containers to a less- congested port. 8 THERE’S AN APP FOR THAT. The proliferation of apps for just about anything has generated countless downloads—and more data. Using these apps, you can integrate data to provide deeper insights. For example, data from a weather app
10 MODEL WHAT-IF SCENARIOS
TO CREATE THE OPTIMAL SUPPLY CHAIN. One of the most effective uses of supply chain data is “what-if” analysis, which allows you to model different aspects and operations of the supply chain with a holistic view to better understand the impact of your decisions and, thus, reduce risk. Inventory, network, and transportation models are common.
SOURCE: SAM POLAKOFF, CEO AND FOUNDER, BRILLDOG
18 Inbound Logistics • January 2023
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WHAT’S THE WORD
The Language of Logistics
LOGISTICS REFRESHER: TAKING A LOAD OFF
Robot Roll Call
Collaborative
Logtech
Drayage is a form of short-haul transport, usually within a single urban area. Unlike long-haul shipping, it’s typically completed within a single shift.
Cooperative vs.
In 2023, logtech (logistics technology) will begin to take shape much like ntech did in its early stages. As ntech today enables almost any company to become a bank, eventually logtech will enable almost any company to become a carrier. With the chaos of the past several years subsiding, logistics and supply chain managers can be less reactive and more proactive— learning how they can use the new technology to take more control of transportation.
Collaborative robots , also known as cobots, refer to robots that work side-by-side with human operators. Cobots share the same working space as humans. Cooperative robots are similar to collaborative robots, but have a virtual fence between themselves and human operators. The cooperative robot can handle tasks of greater complexity and increased throughput.
Cross docking involves transferring cargo or goods directly from the inbound transportation mode to the outbound one.
Container devanning refers to the process of systematically unloading cargo using a counterbalance forklift or other heavy machinery. Visit IL ’s Knowledge Center to explore
Source: IDTechEx
—CHAD SCHOFIELD Co-Founder & Chief Digital Ocer, BoxC
the language of logistics: bit.ly/ILKnowledgeCenter
2023 ECOMMERCE BUZZWORD
Social Commerce
SPEAKING OF SUSTAINABILITY
FOOTPRINTING Manufacturers and retailers perform life cycle analysis on their products to ascertain their environmental impacts. Historically, this product “footprinting” exercise was both tedious and expensive. Typically, product life cycle studies included just a handful of products, and results were extrapolated to similar products. Now organizations are devoting resources to make the product life cycle assessment process more automated and streamlined. The goal is to create templates allowing you to generate product environmental footprints efficiently, thereby increasing the throughput of the process without requiring highly specialized domain expertise. We’ll begin to see a lot of progress in this particular area of sustainable supply chain transformation. —STANTON THOMAS, Senior Vice President, Sustainability Solutions, o9 Solutions
This trend refers to consumers completing the entire purchase within the social media platform, be it TikTok, Instagram, or Facebook. Retailers are taking notice—especially since a viral video on TikTok can cause demand to spike overnight (think CeraVe’s suddenly in-demand facial cleanser). Social commerce shopping increased 37% in 2022 to $37 billion and is expected to hit $80 billion by 2025, according to McKinsey & Co. Not surprisingly brands are making heavy investments in social commerce.
20 Inbound Logistics • January 2023
Pet Supplies
U.S. PET MARKET Market forecast to grow at a CAGR of 3.5%
A proposed EPA rule has the pet industry howling. The rule would establish required Renewable Fuel Standard (RFS) volumes and percentage standards for 2023, 2024, and 2025 (see chart) . The EPA also recommended a series of modifications to strengthen and expand the RFS program. The pet food industry’s response was swift but mixed due to concerns that the proposal could impact feed stocks. For example, some analysts predict that the United States would need an additional 55 million to 60 million acres to plant soybeans to meet renewable diesel demand. However, U.S. farmland is already accounted for, so these additional acres would displace any current crops. “It is important to pause further increases in biodiesel blending quotas until it is demonstrated that the production of necessary feedstocks can catch up to demand, allowing for fuel and food producers to avoid competing for edible oils,” says Dana Brooks, president and CEO of Pet Food Institute, a pet food makers association. “Such competition will further exacerbate supply issues and increase prices.” BIOFUELS: A PET PEEVE
Source: Research and Markets
SHORTAGES HOUND PET SUPPLY GROWTH A rising millennial population, growing adoption of e-commerce to buy pet care products, and an increasing number of single-person households are driving growth in the U.S. pet market. The U.S. pet market will reach $135.2 billion by 2026, predicts a Research and Markets report, with a compounded annual growth rate of 3.5%. But with that growth comes supply chain challenges, including pet food shortages. A primary contributor to these shortages: surging pet ownership during the pandemic. Pet ownership rose to an all-time high of 70% of U.S. households in 2020, according to the American Pet Products Association. Other factors include inflation, shortages of feed stocks and aluminum used to make cans, and dwindling farmland devoted to producing feedstock. Surging pet ownership led to increased pet food sales, and in 2021, consumers continued to buy pet supplies through e-commerce. This trend will continue. Nearly one- third of pet supplies sales will be through e-commerce channels by 2025, predicts a Statista study. The most popular e-commerce sites for pet supplies? Based on revenue, they are Amazon, Walmart, and Chewy, according to the Statista study.
PROPOSED VOLUME TARGETS BILLION RENEWABLE IDENTIFICATION NUMBERS
2023 2024 2025 0.72 1.42 2.13 2.82 2.89 2.95 5.82 6.62 7.43 20.82 21.87 22.68 0.25 N/A N/A
CELLULOSIC BIOFUEL BIOMASSBASED DIESEL*
ADVANCED BIOFUEL RENEWABLE FUEL
SUPPLEMENTAL STANDARD
*Biomass-based diesel is in gallons Renewable Identification Numbers are serial numbers assigned to a batch of biofuel for the purpose of tracking its production, use, and trading Source: U.S. Environmental Protection Agency
22 Inbound Logistics • January 2023
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Pet Supplies MARS PETCARE UNLEASHES ACQUISITION STRATEGY Most pet food companies are enjoying increased sales and revenue growth as more people acquire pets. To capitalize on those market dynamics, Mars Petcare, the largest global pet food company, acquired pet food maker Champion Petfoods. Champion Petfoods’ dry food products–including the Orijen and Acana brands–are sold in more than 90 countries and manufactured in company-owned kitchens in Canada and the United States. The acquisition complements Mars Petcare’s existing pet food portfolio by adding brands in the premium pet food category while broadening its oering within pet specialty and e-commerce channels. The Mars/Champion acquisition is just one high-profile deal in the pet food industry. As of the end of August 2022, more than 25 pet food mergers and acquisitions had taken place.
FEEDING FIDO FAST It’s a situation many pet owners dread. The family pet is hungry, and you are out of food. Same-day delivery to the rescue, thanks to a new partnership between pet supplies superstore PetSmart and Shipt, an expedited delivery company. The partnership adds 1,300 PetSmart stores to the Shipt marketplace and provides same-day pet food delivery nationwide. Customers can place pet food orders in the Shipt app, which features about 200 retail partners, and receive delivery later that day. Hungry pets no more. “Same-day delivery is a key component of our omnichannel strategy,” says Cherise Ordlock, senior vice president of digital at PetSmart. “It's important to expand our e-commerce oerings as demand for convenient shopping options continues to grow.” LOGISTICS KNOW HOW HELPS FRIENDS IN NEED Humanitarian logistics applies to pets, too. When Blue Cross in the UK donates pet food supplies to food banks, it often has trouble getting them to the people and pets that need them most. So Blue Cross partnered with Macfarlane Packaging to ensure pets remain fed in times of owner need. Under the partnership, Macfarlane Packaging deploys some of its regional distribution centers (RDCs) and a number of its fleet to tackle Blue Cross’ distribution issues. Macfarlane collects and delivers pallets of the donated pet food to its RDCs, then delivers them to Blue Cross’ pet food banks and community distribution points. More than 40 deliveries already are scheduled and will continue into 2023.
PURINA VETS FACTORY EXPANSION Factory automation tools and technologies are going to the dogs. Pet food giant Purina recently completed a $156-million expansion of its factory in Clinton, Iowa. The expansion adds capacity and production capabilities that include new cooking and packaging lines. It also adds 96 new jobs. To support its investment in digital tools and technology that promote manufacturing collaboration, Purina added a 3,800-square- foot technical training center as part of the expansion. The training center serves as an onboarding hub and provides factory workers with structured and self-driven training with digital tools. It also facilitates training with replicas of production equipment. Purina also retrofitted a newly purchased building adjacent to the existing factory for packaging and storage for two Purina brands–Purina Pro Plan Veterinary Supplements and Just Right, a personalized dog food brand.
24 Inbound Logistics • January 2023
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READERPROFILE
as told to Karen Kroll
A Window Into Success
RESPONSIBILITIES: Managing a fleet of vehicles along with several warehouse, driver, and oce teams, and overseeing product shipments. EXPERIENCE: Owner, Tu Harber LLC; operations manager, Walmart; program manager, troop commander, assistant operations ocer, executive ocer, and platoon leader, all with the U.S. Army. EDUCATION: M.S., Organizational Leadership, Columbus State University; B.B.A, Business Administration, Bellarmine University. GARY HARBER is distribution manager for Milgard Windows and Doors, a residential window and door manufacturer based in Tacoma, Washington.
G oing through Army Ranger school, an extreme combat leadership program, I repeated every phase at least twice. Instead of graduating in the usual 62 days, it took me about 200 days. That was a humbling experience, But I was 100% determined that I was not leaving without a Ranger tab. I tried to learn from my failures and bounce back. I was still fortunate enough to graduate; the graduation rate is only about 50%. In the military, I served as an executive of cer—basically, a logistician for about 100 people, forecasting consumption rates for fuel, ammunition, food, and other items. I excelled at keeping my team equipped with everything they needed, before they knew they needed it. The Army also provided an opportunity to lead and work with different types of leaders and people,
of spare items and junk collecting in the back lot, taking up space where the eet should park. Plus, if I brought visitors here, that’s what they would see rst. It was like a handshake from our operation. I did not want that re ecting on my team. So, one of the rst projects my team and I took on was to clean this area. When it’s hard to know where to start, cleaning and organizing is always a good point. It helps you organize not only your space, but your mind. We also focus on using data and leveraging it to plan our work. For instance, if items are breaking on the
and taught me the importance of the human element. I won’t ask somebody to do something that I won’t do or haven’t done. I give everybody the same respect; I don’t talk down to people. After the Army, I talked to Boston Scienti c about a sales role, and to Walmart about an operations manager position. The operations position would also allow me to teach leadership. I jumped on that role and was with Walmart for about four years. Empowering my team to take ownership is 100% the direction that I run. For example, when I joined Milgard Windows, I noticed a collection
I won’t ask somebody to do something that I won’t do or haven’t done. I give everybody the same respect; I don’t talk down to people.
26 Inbound Logistics • January 2023
READERPROFILE
truck, we ask: “Which routes? How is the driver securing the loads?” We look for the true root of the problem, rather than just react to it. Once a month, we come together as a team to celebrate birthdays and do team- building activities. Everyone now takes more ownership and it shows. For instance, we cut the percentage of outstanding invoices by about 77%. Leadership style and engagement drive the culture at Milgard. We tell employees, ‘These are your boundaries; this is your target; get to your target and stay in the boundaries.” That allows autonomy so everyone can develop their own way to reach the goals. Just a few minutes ago, I had an issue on the oor and asked one of the workers responsible for the area to handle it. He told me things I didn’t know and said, “I might try something like this.” I learn from my team every day. n
Gary Harber Answers the Big Questions 1 Of all the places you’ve traveled, which one left the biggest impact?
3 You’re suddenly able to time-travel. Where and when would you go? I would love to transport myself to ancient Egypt to see the pyramids, or to see how the Incas made Machu Pichu. I’m a nerd about understanding the engineering of ancient sites, such as the statues on Easter Island or Stonehenge. 4 Do you have a hidden talent? I was a college cheerleader. I typically don’t advertise that too much, but it happened and it was cool. It’s even on my LinkedIn profile now.
South Korea. I was there from fourth through sixth grade. It was cool to be culturally immersed and learn the language as a kid. 2 If you could throw a dinner party with anyone in the world, who would you invite? Ronald Reagan and Arnold Schwarzenegger. Reagan was in oce during a time when he was successful. I’d like to hear what he’d say about what is going on today. Schwarzenegger was in the military, he rose to governor, and he did the whole Hollywood thing.
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January 2023 Inbound Logistics 27
LEADERSHIP Conversations with the Captains of Industry
Right on the Dot
In 2021, Bryan Langston made a leap to the other side of the loading dock door. For more than 20 years, Langston had worked in a series of warehouse-focused management positions at Dot Foods, the largest food industry redistributor in North America, based in Mount Sterling, Illinois. Most recently, he served as the company’s vice president of warehousing. Then, Dot promoted him to president of its af liate trucking company, Dot Transportation, Inc. (DTI). In a conversation with Inbound Logistics , Langston discussed his move to the transportation side of the business, his development as a leader, and what he’s up to lately. IL: What was it like to transition from warehouse operations to trucking? It was like going back to being a rookie again. After many years of knowing who to ask and where to go for things, I felt at rst as though I were in the dark. But our company has really good people who helped me along while I learned the ropes. IL: Describe an experience from early in your career that helped to shape you as a leader. A long time ago, I worked as an assistant department manager in a retail grocery store. We were doing a big inventory, and one individual who worked for me came in three or four hours after we were scheduled to start. This person had a pattern of being tardy. Unfortunately, I lost my cool and did not communicate well. His reaction was just to smile at me. This experience taught me the value of maintaining composure when you deal with a tough people situation, no matter the circumstances. IL: When you became president of DTI early in 2021, you said the company’s top priorities would be safety and staf ng. How has DTI progressed on those two fronts? We’ve had a phenomenal few years with regard to our motor vehicle accident rating. On the personal injury side, it took some work to get everyone back up to speed after the pandemic, when we weren’t going on customers’ docks or doing our other usual physical work. 2021 was a challenge but 2022 was a good year. As for staf ng, we’re well above our driver hiring plan.
Bryan Langston President Dot Transportation
Bryan Langston has had a busy few years. He’s getting his company back up to speed after the pandemic; focusing on driver safety, training, and retention; and opening a new distribution center. But, he is never too busy to be there for all his employees and his door is always open.
by Merrill Douglas
28 Inbound Logistics • January 2023
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