3PLs SLAM VOLATILITY
executive ocer with Evans Distribution Systems. For instance, a shipper might sign a lease with Evans for 100,000 square feet that includes an option to cut back or increase its space by 25% at the end of the year, so it can respond to any changes in its business. To ensure it can provide this exibility, Evans maintains strong relationships with landlords and real estate professionals in Detroit, which is near its headquarters in Melvindale, Michigan. e level of trust his team has established with its business partners often allows it to move quickly, Evans says. 5. Deploy Foreign Trade Zones As the tari environment has intensi ed, the number of shippers interested in learning about foreign trade zones (FTZs) has jumped. (FTZs are specially designated sites near U.S. ports of entry that allow corporations to move goods in and out of the country while paying reduced or even no customs, duties, taxes, or fees.) In April 2025, in response to the new tari s, Evans Distribution activated 378,000 square feet of warehouse space as a General Purpose Foreign Trade Zone. In total, Evans’ FTZ square footage totals about 2.3 million square feet, Evans says. Note that the government created a loophole that diminished the primary bene t of an FTZ, so shippers now pay the tari rate that’s assessed at entry, rather than the rate at release, which could be lower ( see sidebar ). However, some shippers still use the FTZ to defer tari payments, Evans says. 6. Leverage Purchasing Insight Over the past few months, In nity Loop, a negotiation intelligence platform, has seen a seven-fold increase in purchasing contract renegotiations. “ e assumptions that went into contracts that were negotiated six to 12 months ago are thrown completely out
the window,” says Nithin Mummaneni, the company’s CEO. He attributes that to ongoing supply chain volatility. By leveraging information contained within their contracts, shippers can identify the ones that could most bene t from adjusting. Say a manufacturer that buys corrugated packaging across several regions signed a contract one year ago. In nity Loop continuously analyzes commodity indices, freight costs, and other market signals, then compares them to the contract. If it nds a buyer is paying well above current market rates, the solution can identify the contracts most likely to support a successful renegotiation. “Most companies have thousands of contracts, and no one can hold every pricing provision, review clause, and trigger event in their head,” Mummaneni says. Another change is the growing number of renegotiation clauses in new contracts. A provision might stipulate, for instance, that if a relevant price index moves more than 15% over a speci ed period, either party can reopen pricing. In general, both sides bene t from this exibility. If the price of a key raw material jumps signi cantly and the contract o ers no mechanism to adjust the pricing, the vendor might struggle to ful ll the contract while maintaining pro tability or even viability. at’s a risk for the vendor and its customer. “Both bene t from a predictable way to handle volatility,” Mummaneni says. 7. Be Transparent e rise in fuel prices is impacting almost every organization. In its invoices, Buske Logistics identi es fuel separately, says Steve Schlecht, director of strategic initiatives. Buske also bases its fuel charges on a neutral, relevant index and incorporates guardrails that identify when pricing can be adjusted. With this approach, shippers and Buske can ride the fuel markets together, and both parties can limit their exposure.
to meet the baseline demand. “ e real value comes from t-for-purpose automation, not from maximizing the level of automation itself,” Podwojewski says. Penske’s Supply Chain Insight platform mitigates volatility by integrating fragmented warehouse and transportation data into a single, real-time visibility portal. By providing shippers visibility to their logistics and supply chain operations, logistics providers can help them react quickly, or even proactively, to disruptions. For instance, Penske Logistics can leverage Supply Chain Insight, a platform and app that o ers shippers real-time visibility and a uni ed view of their supply chains, including aggregated data from multiple logistics providers, says Mike Medeiros, executive 3. Aggregate Data for End-to-End Visibility vice president. It also can optimize routing across complex networks. Shippers can make decisions based on updated, comprehensive views of their inventory and operations, then quickly identify where to focus attention. 4. Provide Flexibility To some extent, logistics providers themselves are a solution to volatility, says John A. Evans, president and chief
120 Inbound Logistics • July 2026
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