FREIGHT BILL AUDIT & PAYMENT: SAVINGS IN THE BAG
ALSO Top 100 Trucers Cler the Hurdles Truc n Surve Avo d the Obstcles
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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
$90.7 billion by 2031 Estimated annual revenue for the global freight brokerage
90% Target’s Q22 profit results after the retailer was forced to slash prices to clear unwanted clothing, home goods, and electronics inventories. In June 2022, Target warned that it was canceling supplier orders and aggressively cutting prices after consumers shifted spending as the pandemic eased.
market, after amassing $48.1 billion in 2021.
NEXT-GEN REEFER TRAILER Walmart added custom-built 60-foot refrigerated trailers to its Canadian fleet; “the first of its kind for Walmart in North America,” the retailer says. Designed to improve supply chain eciency and reduce CO2 emissions, the trailer can fit as many as 30 pallets of perishable goods requiring di erent temperatures, as opposed to about 26 pallets for a standard 53-foot trailer. The new trailers allow the Canadian fleet to service stores together that would not normally ship on the same trailer. –CDL Life PARCEL TRACKING • On-time performance for parcel deliveries continues to improve but has not returned to pre-COVID levels. • Fulfillment, transit, and click- to-deliver times show signs of improvement . • Shippers continue to increase the number of carriers used. –project44 survey, North America (August 2022)
Driving the growth: a rise in international trade activities and e-commerce. Shippers using freight brokerage services to cut costs and reduce lead times opens new growth avenues for the global market. –Allied Market Research LABOR DAY STEALS Extended holiday breaks create opportunities for enterprising cargo thieves to plot sophisticated heists. Noteworthy thefts from previous Labor Day holidays: • $434,379 in apparel stolen from Pomona, CA • $417,206 in computer electronics stolen from Ontario, CA • $400,000 in vodka stolen from Jacksonville, FL • $300,000 in computer electronics stolen from Los Angeles, CA • $291,093 in hardware store merchandise stolen from Conley, GA
TRACTOR BEAM Toyota is testing a hitches towing system that allows one vehicle to “tow” another without any physical connection between the two. Could semis so equipped be next?
September 2022 • Inbound Logistics 1
CONTENTS SEPTEMBER 2022 | VOL. 42 | NO. 9
FEATURES 38 TOP 15 WAYS TO MANEUVER IN TODAY’S TRUCKING MARKET Buying trucking services can feel like running an obstacle course— constantly negotiating rates or avoiding capacity hurdles. As 2023 approaches, it’s time for shippers to train for the next challenge. 44 Inbound Logistics ’ exclusive yearly survey of motor carriers and shippers oers a close look at the state of the trucking industry in an era of inflation and supply chain volatility. 2022 TRUCKING PERSPECTIVES
98 5 WAYS TO STEP UP YOUR WMS GAME Here’s a play-by-play guide to
71 SPONSORED FREIGHT BILL
AUDIT & PAYMENT: SAVINGS IN THE BAG To save money and streamline supply chain processes, freight bill audit and payment providers help enterprises gain insights from their freight data and bring bottom-line benefits.
choosing the warehouse management system (WMS) that will help you win the supply chain. Following these key steps will help ensure you choose the WMS that will clinch a supply chain win.
52 TOP 100 TRUCKERS 2022 In today’s volatile business climate, it’s more important than ever to find carrier partners that best fuel your diverse and demanding needs. Inbound Logistics ’ annual Top 100 Truckers list oers a snapshot of the trucking segment—from large, global truckload and LTL carriers to niche regional haulers that get the job done.
103 WMS GUIDE 2022
Warehouse management system solutions help streamline order fulfillment, increase inventory accuracy, and optimize equipment utilization. This short list of leading WMS solutions can help your enterprise react quickly to meet today’s new customer demands.
2 Inbound Logistics • September 2022
Forward Because it matters, think Forward. SINGLE-SOURCE FREIGHT
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CONTENTS SEPTEMBER 2022 | VOL. 42 | NO. 9
GOOD QUESTION What phrase would you create to describe a supply chain trend or development?
26 SPONSORED KNOWLEDGE BASE Top 5 mistakes in transportation RFPs 28 SPONSORED ABOVE & BEYOND
ScottsMiracle-Gro: Getting the right logistics players in place 30 SPONSORED SOLVED Hauling away a foul fowl mess 32 SMART MOVES Prioritizing meaningful work 34 DISRUPTION MITIGATION Preparing for disruptions 36 VIEWPOINT Building industry-focused solutions INFO 108 SUPPLY CHAIN INSIGHTS 110 WEB_CITE CITY 124 CALENDAR 126 RESOURCE CENTER
A new packaging machine for chocolates? Sweet!
INFOCUS 1 INFO SNACKS
22 SPONSORED Best practices for implementing a warehouse management system 24 SPONSORED THOUGHT LEADERS Be prepared to manage the complexities of Mexico cross- border logistics
12 VERTICAL FOCUS: HOME CONSTRUCTION 16 NOTED 18 TAKEAWAYS 121 IN BRIEF 128 LAST MILE The back-to-school supply chain INSIGHT 6 CHECKING IN Inflation innovation stagnation 8 GOOD QUESTION What phrase would you create to describe a supply chain trend or development? 10 10 TIPS Ensuring a sustainable supply chain
INPRACTICE 14 LEADERSHIP
Acing school supply challenges
Born in Bolivia and raised in the United States, Cameroon, and France, Katherina-Olivia Lacey took a world-circling route to her current position in supply chain technology. Now co-founder and chief product ocer at Quincus, a Singapore-based logistics software firm, Lacey constantly drives new solutions despite the exhausting challenges of helping customers with small but important supply chain problems .
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
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CHECKINGIN Inflation Innovation Stagnation
Vol. 42, No. 9 September 2022 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
STAFF PUBLISHER Keith G. Biondo
W hat many have overlooked during the purposeful economic deacceleration we are experiencing is the choking off of innovation investment and the resultant
EDITOR Felecia J. Stratton
SENIOR EDITOR Katrina C. Arabe
long-term damage to future economic growth. In the past 25 years, a rush of innovation has
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AUDIENCE DEVELOPMENT & RESEARCH
empowered business transformation, especially in supply chain operations. Achieving demand-driven enterprise status would have been impossible without the innovative technology-driven processes brought to bear on how we
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Keith Biondo, Publisher
source, ship, and fulfill product, all while meeting evolving customer needs and demands. Meeting customer needs efficiently and expeditiously has amped up the quality of life for millions in the United States and around the world. But the man-caused economic downdraft and global statecraft failures have destroyed supply chain efficiency to the point where many leading practitioners are abandoning lean processes. HP, for example, is “going on offense,” says Ernest Nicolas, the company’s new chief supply chain officer. “Even before the pandemic, there were some challenging macroeconomic conditions that were already telling us it’s time to change … to pivot away from what has been historically the lean supply chain … and companies want to get back to the way things were,” he says. Who can question his approach, given HP’s recent massive losses due to supply chain disruptions? But must we now toss away innovative ideas fundamental to lean approaches like Kanban, Kaizen, SCM, and Six Sigma? How many millions have companies saved by adopting lean operations? How have lean operations enhanced sustainability? Must we toss what works and has worked for decades? No matter. Roll it back! Invest in innovation? Can’t do it. Cash is tight. We have to go back to the way things were. Election-driven monetary machinations may salve, but not solve, some problems in the short term. Creating and curating an economic climate that starves innovation investment is a much larger issue and will deliver significant long-term pain. What new unfunded innovations will never see the light of day? Thankfully there are a few bright spots. One is the innovation initiatives at the Savannah Logistics Innovation Center, a public-private partnership co-led by Georgia Southern University and innovation incubator Plug and Play, and supported and promoted by supply chain leaders such as Syfan Logistics. The Center, along with sponsors and Plug and Play, support 11 startups in the logistics space working on innovations ranging from “triangulation” to match import containers with exporter needs, to enhanced visibility to manage in-transit shipments, to an immersive forklift training solution, among others. We need many more innovative initiatives like these to overcome innovation stagnation.
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GOODQUESTION Readers Weigh In What phrase would you create to describe a supply chain trend or development? stockouch [stok-ouch] interjection MULTI-VENDORING. Companies requiring a local sourcing option for any raw materials that they need for any new products. –Arjun Chandar Co-founder and CEO, IndustrialML
1. An exclamation of sharp sudden pain due, or as a reaction, to an out-of-stock event (i.e., an event that causes inventory to be exhausted). “ Stockouch! I just read that shortages cost Super Supply Company $15M in lost sales in Q2.” noun
FREIGHTOLOGY. Analyzing a company’s middle-mile logistics
and determining the best method of shipping based on time or cost that most benefits the customer. –Amber Crosby Head of Client Success, WARP DISTRO-FACTURING. Small to mid-size distribution businesses diversifying offerings to compete with large enterprises and meet customer needs. The seismic shifts of the past years have forced many SMBs in manufacturing and distribution industries to shed traditional roles and empower themselves with expanded in-house capabilities to make, move, and sell amidst an ever-changing supply chain landscape. –Vaibhav Vohra Chief Product Officer, Epicor CHAOS HACKING. Using all of your current sources of data, information from suppliers/customers, and external risk information to build a picture of the supply chain and make effective decisions despite uncertainty. –Tony Pelli Practice Director, Security and Resilience, BSI SUPPLY CHAIN VISALYTICS. Supply chain visibility + market analytics. Innovative supply chain managers are increasingly using market-level analytics to benchmark their own performance. Everything from
1. The repercussions, or overall detrimental impact, resulting from stockouts (also known as out-of-stocks). This can occur along the entire supply chain, but the most visible kind are retail out-of-stocks in the fast- moving consumer goods industry. “While most companies that survived last year’s e-commerce waves emerged rattled at best, the stockouch for most was a severe hit to profits—triggering a ‘bullwhip effect’ in which those companies ended up over-purchasing stock as a safety cushion.” 2. The loss of sales, or cost otherwise accrued, from a retailer’s attempt to build up its inventories after suffering from stockouts. “Rather than benefit from the surge in demand, retailers suffered. In a recent survey, almost half said they experienced stockouts, leading to a serious case of stockouch on their businesses’ bottom lines.” –Eric Allais President & CEO, PathGuide Technologies
dot plots to measure shipping rates vs. interest rates—with a lot of questions about the Why Axis. –Gregory W. Tuthill Chief Commercial Officer SeaCube Containers SUSTAIN-AGILITY. The trend of shippers wanting sustainable deliveries and also the ability to maintain flexibility for their dynamic shipping needs. In other words, a last-mile shipping model that enables both flexibility and sustainability.
container dwell times to rollover rates to lead times are being implemented to streamline their own performance, reduce costs, and provide the best experience for their customers. –Josh Brazil VP, Supply Chain Insights, project44 DOT PLOT MANIA. In 2021, bankers’ interests were piqued with the buzzword rate-flation , resulting in an abundance of dot plot graphs. Now, with the Federal Reserve taking a hawkish position on interest rates, we expect bankers to ramp up their use of
–Adam Bryant CEO, AxleHire
8 Inbound Logistics • September 2022
ECONOMIC ROADKILL. When you see tire rubber on the highways increase, you know the economy of scale is the creation. As the supply chain gets worse, it brings on what I call casual carriers —here today, gone tomorrow, leaving their lack of maintenance on our highways as economic roadkill. –Reo Hatfield VP, Business Development, TA Services CHAIN TRACKS. In today’s volatile global economy, an organization’s supply chain must be lean and agile to successfully support the business. This can be accomplished through a variety of ways (or “tracks”) using a combination of people, process, and technology. –Paul A. Myerson
Delivery Elevates Products
BRANDFLECTION. What is being reflected to a customer in a single delivery experience? Retailers
must pay attention to their delivery brandflection , or reflection of their brand. Most consumers don’t distinguish between stores and their delivery partners, so the people and technology used for delivery need to accurately represent a brand’s image.
–Brian Kava CEO, PICKUP
PRODUCTIZATION OF DELIVERY. Customers want delivery options and they want them to be fast, reliable, and easy. They’re willing to pay a reasonable price for these choices. It’s time for every business to adapt and harness the power of the productization of delivery . It is meaningful as the delivery itself becomes a real physical touchpoint in a digital world. –Bill Catania CEO & Founder, OneRail
Adjunct Professor, Supply Chain Management, Kean University
RAINY-DAY-LYTICS. Think rainy-day fund meets analytics. As businesses further adopt analytics into the supply chain, and delays and shortages continue, companies are setting aside extra stock, just-in-case. –Matt Heerey President, Manufacturing Division ECI Software Solutions CONTRACT-PALOOZA. The past 6 months have been all about contract freight. We’re seeing carriers in search of contracts, and shippers are looking to lock in rates that have come down off their peak. –David Spencer Director of Business Intelligence Arrive Logistics CONGESTIFICATION. The resulting
SUPPLY CHAINSMOKERS. Supply chain executives who have resorted to bad habits as the pressure to meet unrealistic timelines mounts due to ongoing disruption, bottlenecks, lack of capacity, equipment and warehouse shortages, extended dwell times, and rising rates. –Lisa Aurichio President, BSY Associates Inc. ON-SURING. Relocating operations and suppliers closer to home to create a more controlled and seamless supply chain. This trend directly impacts distances by bringing the parties closer together, creating more sustainable supply chain efficiencies. –Mike Garcia Market Manager—RPM ORBIS Corporation
analytics, leading to precise ETAs and routing, and reduced cost and emissions.
–Stuart Ryan VP, Sales & GTM (Americas) HERE Technologies
DISRUPSTAINFLATION. The trifecta of inflation, disruption, and sustainability is top of mind with business and supply chain executives, driving the need for improved resiliency, visibility, and collaboration across the ecosystem to make informed, real-time decisions to meet customer demands, regulatory mandates, and financial objectives. –Richard Howells VP, Cloud ERP and Supply Chain, SAP
ripple effect(s) and supply chain delays, due to port congestion.
–Mike Williams Executive VP for Commercial & Logistics, ContainerPort Group
Have a great answer to a good question? Be sure to participate next month. We want to know: If you could invent one tool to help you do your job better, what would it be? We’ll publish some answers. Tell us at firstname.lastname@example.org or tweet us @ILMAGAZINE #ILGOODQUESTION
OMNI-MILE VISUALIZATION. Supply chain management has been broken down into first, middle, and last mile, but modern approaches require holistic views of the entire supply chain—enabling managers to make informed decisions, mitigating delays, providing better predictability and
September 2022 • Inbound Logistics 9
The Ukraine conflict, COVID-19, and rising inflation have drawn attention to the fragility of global supply chains. With all eyes on logistics, operations leaders have additional reason to examine supply chains from the ground up. Here’s how to start. Ensuring a Sustainable Supply Chain
1 MAP YOUR SUPPLY CHAIN
are new to sustainability, help them begin their sustainability journey and share best practices so that you can improve together. 8 HELP DECARBONIZE SUPPLIERS. As part of supplier engagement, consider crowdfunding or investment initiatives to direct capital to your value chain. For example, helping your raw materials supplier install on-site renewable energy will reduce your Scope 3 emissions and make them more resilient to energy price swings and outages. 9 TRACK YOUR PROGRESS. Track and celebrate wins. Set a specific carbon reduction target or net zero plan, so that you can measure the impact of your work. With your baseline and reduction target, you’ll be able to monitor persistent hotspots and areas where you’ve made the most progress.
UPSTREAM AND DOWNSTREAM. Any exercise to improve supply chain operations must include identifying upstream and downstream partners. Gain as much knowledge as possible. Learn about geographic exposure, climate goals, and sustainability metrics already being tracked.
2 ALIGN STAKEHOLDERS. The data and know-
electronics supply chains are vulnerable to shifting policy. Look at your top emissions source and products with the highest footprints. Consider inputs produced in-house vs. procured from external vendors. Investigate how you move and package goods. 5 IMPROVE OPERATIONAL EFFICIENCY. Reducing downtime and improving throughput across your operations are good for your bottom line and sustainability. Switching to electric vehicles requires less maintenance than internal combustion engine vehicles, which reduces downtime, maintenance costs, and fuel spend. Simple route optimizations, which are easy to identify with route optimization software, can save fuel and money.
6 REDUCE RESOURCE WASTE. There are almost always areas within a supply chain where you can reduce or optimize resource usage. Concrete and cement producers are looking at ways to reuse hazardous wastewater. Clothing retailers are creating entire product lines out of scrap materials. Packaging can often be reused or repurposed. 7 DEVELOP A SUPPLIER ENGAGEMENT PLAN. Establish sourcing standards and a supplier code of conduct that require emissions disclosure and carbon reduction targets. The United Nations Global Compact provides advice on this topic. Rather than dropping suppliers who
how needed to improve sustainability is dispersed across partners and teams. You’ll need everyone’s help to adjust contracts, optimize production, and create reports, so get buy-in early. 3 ESTABLISH A BASELINE. Since every supply chain is different, measuring Scope 1, 2, and 3 emissions is the most powerful way to determine your strengths and weaknesses. Scope 3 emissions, in particular, are tied to your supply chain, so they’re critical to monitor. Use automated carbon accounting technology to ensure consistency. 4 IDENTIFY YOUR PAIN POINTS. Once equipped with data, identify operational vulnerabilities and risk, which differ significantly depending on industry. For example, agricultural supply chains are more exposed to physical risks, like extreme heat and drought, while
10 COMMUNICATE RESULTS
INTERNALLY AND EXTERNALLY. Sharing progress drives accountability and growth. Send internal updates to stakeholders, publish an annual sustainability report, or participate in more formal climate disclosures. Existing customers will be pleased that your operations are more resilient, and prospective customers may choose you thanks to your sustainable supply chain.
SOURCE: SALEH ELHATTAB, CEO & FOUNDER, GRAVITY CLIMATE
10 Inbound Logistics • September 2022
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IF YOU BUILD IT, WILL THEY COME? In the aftermath of the housing frenzy that occurred during the pandemic, the country now faces a major slowdown in the housing market. Homebuyers are skittish and demand is cooling, thanks to high inflation and rising mortgage rates. As a result, homebuilding numbers are on the decline. New housing starts—the barometer of the industry’s health—fell to the lowest level in more than a year, as the U.S. government reported in July 2022 (the most recent data available at press time). The figure plunged 9.6% month-over-month to an annualized rate of 1.446 million units in July 2022, the lowest since February 2021 and well below market expectations of 1.5 million. Homebuilders are bracing for more disappointing numbers, as demand for new housing units stagnates. Suppliers, manufacturers, and other vendors up and down the home construction supply chain can also expect to feel the pinch. A few additional stats from the government’s July numbers illustrate the sector’s current shaky status. • Building permits were slightly above expectations at nearly 1.7 million, but fell about 1.3% from June and are down from about 1.8 million in April. • Housing activity could fall roughly 30% or more over a multi-year period in a worst-case scenario, Fitch Ratings predicts, pushing home prices down between 10% to 15%. • In one bright spot, permits for multi-family units rose 2.8%, helping to o set the steep 4.3% drop in the single-family sector. Lower lumber prices and still-high rents may incentivize builders to construct more multi-family units.
Fighting a laundry list of challenges— including pandemic disruptions, labor shortages, supply chain issues, and increases in real estate and building materials costs—nonprots in the homebuilding sector have had to tap their inner innovators to stay on track with their mission of building affordable homes. Supply chain woes have been hard on Habitat for Humanity, for example. The organization has responded by storing windows, refrigerators, and other materials in warehouses to ensure it has the supplies stocked when they are needed. In addition to constructing new homes, Habitat for Humanity repairs properties and does rehabilitation construction—services that have kept it on track despite recent issues. The organization also has altered some of its strategies as workarounds. It is looking at ideas like “Can we increase density? Can we look at accessory dwelling units? Can we look at compact- size homes that will meet different needs when we think about veterans and the elderly?” Adrienne Goolsby, senior vice president of Habitat for Humanity, told ABC News in Denver. Thanks to its creative planning, the nonprot expects to continue its trajectory of building nearly 3,000 homes each year. GETTING CREATIVE ABOUT BUILDING SUPPLIES
CALIFORNIA HERE WE COME Home improvement retailer Home Depot is making moves in Southern California. In April 2022, the company leased a 1.1-million-square-foot warehouse in the Inland Empire region, and just announced it is taking another 529,866 square feet in a new building in Irwindale, California. The new facility, according to Duke Realty, is decked out with the latest proptech for managing indoor conditions through digital interfacing, and for meeting electricity needs through solar power.
12 Inbound Logistics • September 2022
STEEL YOURSELF Home construction requires a lot of steel, a commodity that has been heavily impacted by the ongoing war in Ukraine (the world’s third-largest steel exporter), as well as COVID-related supply chain instability in China (the world’s largest steel exporter). As such, there’s no clear consensus on what path steel prices will take. Here’s some food for thought from manufacturing platform Metal Miner: “With the war a ecting trade so dramatically, normal metrics for evaluating the steel market no longer apply. As we stated several months ago, the steel market seems to have moved away from traditional supply-and-demand- based predictability. Instead, economists are rushing to produce new models that better reflect the 2022 marketplace. For now, it’s a waiting game being played by some very stubborn participants.” MARKET FORECAST: CLOUDY, WITH A CHANCE OF SUN A recent overview of the construction materials market by FMI Capital Advisors paints a murky outlook for the near future. While clouds roll in from an economic downturn brought on by historic levels of ination as well as interest rate hikes and supply chain constraints, there are some reasons to expect some sunny upsides peeking through. Two mitigating factors are keeping recession impacts at bay for the construction materials market, FMI Capital notes. 1. Committed federal funds from The Infrastructure Investment & Jobs Act (IIJA) bill will help to keep the construction industry moving forward. 2. Construction is a local industry, so some of the individual and unique
RAISE THE ROOF! Materials producers and homebuilders worried about roofing costs and energy use can take heart from a new ICF International study that details how upgrading to energy code-compliant roof systems substantially reduces whole-building energy use. This, in turn, leads to decreased energy costs and carbon emissions which, the study says, pay for themselves many times over during their expected service lives. Some key takeaways from the roof replacement study include: • Even when subject to higher incremental installation costs and discount rates, roof replacements are life-cycle economical under various conditions. • Through a significant reduction in natural gas fossil fuel use and overall improvement in energy eciency, roof replacements support the transition to building electrification. • By oering a cost-eective tool to help building owners reduce energy use and lower carbon footprint, roof replacements support building performance standards and carbon emissions reduction goals.
markets where producers operate may remain strong. Here’s a breakdown of FMI’s overall predictions:
• Ination has increased energy and steel prices, which hurts construction materials producers’ prots. Producers who pass on increased costs to customers will fare much better than those who cannot. • Interest rate hikes are a necessary evil to set prices back to sustainable levels. The increases mean that home borrowing costs will increase signicantly (a negative effect on home construction) and nancing equipment through loans will continue to become more expensive. • The strained supply chain directly impacts the construction materials sector as it pertains to equipment purchases. The expected easing of supply chain constraints should allow producers to get much-needed equipment in a timelier fashion. • M&A activity: Buyers remain active and are willing to pay premium valuations for strategic targets in attractive markets.
September 2022 • Inbound Logistics 13
LEADERSHIP Conversations with the Captains of Industry
“I Am Never Giving Up”
Born in Bolivia and raised in the United States, Cameroon, and France, Katherina-Olivia Lacey took a world-circling route to her current position in supply chain technology. Lacey is co-founder and chief product ofcer at Quincus, a Singapore- based logistics software rm that serves industries such as food delivery, pharmaceuticals, manufacturing, retail, and e-commerce. We recently talked with Lacey about her history, leadership approach, and current business concerns. IL: How did you come to co-found a logistics IT company based in Singapore? I was preparing to start on my doctorate in business at INSEAD in Fontainebleau, France, and my co-founder, Jonathan Savoir, was already working on his doctorate at that institution. We concluded at about the same time that we would not continue our work toward those degrees. But we didn’t want 9-to-5 jobs, either. We wanted to start something that was meaningful and solve problems in countries where the solutions weren’t obvious. That led to our rst version of Quincus, which began as a B2B intra-city delivery logistics player in Sao Paulo, Brazil. After Brazil imploded due to the problems surrounding Petrobras, the state-owned oil company, we decided to go to Singapore, which was heavily investing in nurturing startups. Beginning again from nothing, we used our technical solutions to consult and help companies use optimization tools to improve their logistics operations. But our customers told us they wanted a product they could implement themselves. We now have four solutions adapted to different industries, and we operate globally, including in the United States. IL: How did your early career help shape you as a leader? When I completed my MBA, I knew I wanted to be an entrepreneur. I was lucky to get a job with a small B2B e-commerce company that sold plus-sized swimwear. I worked there for no more than one year, but I did everything— inventory, packaging, handing boxes to drivers, climbing around in the warehouse. I saw how difcult it is to focus on just one thing. You always have things that are backlogged or problems coming forward. Weirdly, I loved all that. There was never a dull moment. At the same time, I loved my experience in academia, including
Katherina-Olivia Lacey Co-founder and Chief Product Ofcer, Quincus
Despite the exhausting challenges of helping demanding customers with small but important supply chain problems, Katherina-Olivia Lacey puts on a brave face, holds it together, and constantly drives new solutions.
by Merrill Douglas
14 Inbound Logistics • September 2022
You’re Uncomfortable? Great! The upheaval of leaving Brazil with her Quincus co-founder in the wake of the Petrobras scandal hit Katherina-Olivia Lacey hard. “It took me a long time to regain the assertiveness I needed to be able to lead people,” she says. No one likes that kind of unease, and at one time Lacey was reluctant to force her employees outside their own comfort zones. But Lacey has changed her mind on that point. “I realized that being uncomfortable is fun,” she says. “When the job becomes too easy for someone, you push them.” Employees need space to figure out solutions for themselves, and they need to take credit for their accomplishments, Lacey says. So, for example, she recently gathered Quincus engineers—who generally don’t enjoy public speaking—to give a demonstration to their peers and the company’s product managers. “They should be able to say, ‘Hey, I did this!’” she says. “And that’s uncomfortable.”
the time I spent assisting one of the professors. My desire to be both an entrepreneur and an educator-leader helped to shape me. IL: What keeps your customers awake at night these days? It’s the margins they’re faced with. Customers want their products now. Logistics players pay a heavy price to fulll that wish, for example by paying drivers to deliver seven days a week. They stay awake wondering how they can make their routes smarter and how to improve operations on the oor. IL: How does Quincus help with those challenges? Small things can impact the entire supply chain. Say a customer asks a delivery company to hold their package. You need to make sure the warehouse can handle that, and for how long. Where should it be stored? Is there a weight limit? Who will send a reminder once the customer is ready for the delivery? If a customer changes an address, does the delivery now go to a different part of town? How do I shift it to another driver? We solve all these small but important problems. IL: How would you describe your leadership style? I’m always trying to become better at what I do. When people work with me, I want to teach them and also challenge them. I use a lot of trial-and-error. I’m fair, but I’m also strict. When it comes to nurturing talent, I need to show that I’m okay with uncertainty. Sometimes I have to put on a brave face to show people that it’s okay when things go wrong. Organizations go through a lot of growing pains, especially at our stage. We have to reward people who stay, but also make sure they understand why they’re there, despite the changes. IL: What’s at the top of your agenda these days? I’m thoroughly focused on process structures and workows. I’m looking at how certain departments interact and how we can automate some of the mundane tasks that slow us down. IL: What’s the hardest aspect of your job? Holding things together. When stuff hits the fan, you can’t panic or let people think that you won’t be able to bring a solution to the table. Over time, you learn to drive solutions constantly. I like that, but sometimes it’s exhausting.
When everyone looks to me for a solution, I want to say, “I need two minutes to think. I need to go to a quiet place.”
IL: When you get up in the morning, what excites you about going to work? Oddly enough, it’s the random things that get thrown at me. Also, it’s the thought of how hard Jonathan and I have been working at this since 2014. We’ve lived too many lives, gone through too many chapters. All this wakes me up, because no matter what challenges come along, there’s no way I’m going to give up. IL: What piece of advice would you give to your 18-year- old self? Don’t underestimate who you want to be and what you can do. If you say to yourself, “I can,” you will. You need to nd the door and create the solution. And if there’s no door, you need to create one. IL: How do you spend your time when you’re not working? I travel for work and pleasure at the same time. I like to play golf; the golf course is the only place where I can shut off my phone for a few hours. The silence is rewarding. I like to hang out with my Old English Sheepdog. I look for calm when I’m alone. n
September 2022 • Inbound Logistics 15
NOTED [ IN FOCUS ]
The Supply Chain in Brief
> GOOD WORKS
> SEALED DEALS
• Logistics provider cargo-partner , along with aid organization
Jugend Eine Welt and its partner, the Salesians of Don Bosco, are working together in Moldova to help young refugees from Ukraine overcome trauma and integrate into their new country. The project benets 40 refugee children and 40 Moldovan children.
> UP THE CHAIN
• Dana Duckworth joined AFFLINK, a supply chain solutions marketplace provider, as vice president of supply chain solutions. Her role includes developing end-user business in key market segments and leveraging relationships within the supplier/distributor community to drive growth. Duckworth previously coached women’s gymnastics at the University of Alabama.
• Shanghai-based electronic components manufacturer Siemens Switchgear embarked on the second phase of a smart manufacturing automation project that adds Geek+ goods-to-person picking and materials handling robots to Siemens’ warehouse.
• Toyota Motor in Kazakhstan expanded its partnership with logistics provider Gebrüder Weiss to include spare parts distribution, auto transport, daily parts deliveries, and warehouse logistics.
• Kari-Out, a manufacturer, importer, and distributor of take- out food containers, named Mitch Kahn vice president of manufacturing and supply chain management and hired Dave Fredrickson as vice president of sales.
• Electric carmaker Lucid Group appointed Evelyn Chiang (pictured) as VP of process transformation and Walter Ludwig as VP of global logistics. Chiang has held executive leadership roles at SAP, Tesla, and other global technology companies and was most recently COO at Siteimprove.
• Home accessories designer Creative Co-Op selected the GAINS Performance Optimization Platform to improve visibility throughout its growing multi-channel businesses.
• AMPORTS, a North American auto processor, selected AI-based yard management optimization software from INFORM . The company will implement the software at its Jacksonville, Florida and Benicia, California terminals, among other locations. • Grocery and convenience item distributor Blue Sky Distribution now manages its rapid e-commerce growth and extreme peaks in order volumes using the Descartes OzLink Mobile Warehouse solution.
• Marc Rodriguez was hired as director of warehouse operations for the kegs services and supply chain management team at Hillebrand, a logistics services provider to the alcoholic beverage industry. • Bolloré Logistics appointed Francois-Xavier Colin to the position of general manager of supply chain for the Americas. In this new role, Colin is responsible for leading strategy and process, and growing the company’s contract logistics business line in the United States, Canada, and Latin America.
16 Inbound Logistics • September 2022
> M & A
n KLLM Transport Services, a temperature-
controlled truckload carrier in North America, acquired refrigerated transport firm Quest Global, located in Cartersville, Georgia. n PS Logistics’ subsidiary DMT Trucking acquired Noble LLC, Noble Trucking, and Noble Logistics , making it one of the largest 53-foot lightweight flatbed carriers in the country, with more than 400 power units and 1,000 trailers. n A.P. Moller-Maersk continued its acquisition spree by purchasing project cargo specialist Martin Bencher for an enterprise value of $61 million. n Indiana-based logistics broker Backhaul Direct acquired trucking company Baker’s Express , gaining more than 250 vehicles available for regional transport that will help ease local supply chain backlogs. n UPS plans to purchase multinational healthcare logistics provider Bomi Group, adding 3,000 employees across 14 countries, as well as approximately 350 temperature-controlled vehicles and 4 million square feet to the UPS Healthcare global footprint.
• Bettaway Beverage Distributors was named by Schneider Transportation Management as the top- performing mid-sized truckload contract carrier in Schneider’s carrier-of-the-year program. Schneider selected Bettaway for exemplary support of its truckload brokerage operations.
• Dave Micha , a welder at The Raymond Corporation , won gold at the Toyota Material Handling Group Skills Competition, beating competitors from the United States, China, France, Italy, and Sweden. The competition consisted of performing tack welding, executing semiautomatic welding, and finishing the surface of a steel pressure vessel.
• The Intermodal Association of North America (IANA) presented three professionals with industry awards. Ted Prince , chief strategy officer and co-founder of Tiger Cool Express , received the IANA Silver Kingpin Award for his career-long industry contributions. Jim Newsome , executive advisor to the South Carolina Ports Authority , is the honoree for the 2022 Chairman’s Award, in recognition of his dedication to the association. And Congressman Alan Lowenthal , representing California’s 47th District, is the recipient of the Intermodal Achievement Award for his consistent support of the freight supply chain. • Landstar honored its safest independent owner- operators at the 2022 Landstar BCO All-Star Celebration. The company’s newest class of Million Mile Safe Drivers —truckers who have driven at least one million consecutive miles with Landstar without a preventable accident—includes 112 new One Million Mile Safe Drivers, nine new Two Million Mile Safe Drivers, and five new Three Million Mile Safe Drivers.
> GREEN SEEDS
n RoadOne IntermodaLogistics
launched an electric truck pilot with IKEA, the Port of Baltimore, and Nikola Corporation. It is the first
company at the Port of Baltimore to engage in an electric truck pilot, and RoadOne estimates the initiative will remove 11,000 gallons of diesel fuel per truck in one year.
n Furthering its commitment to sustainable action, beverage giant PepsiCo expanded its use of 100% waste- based thermoplastic across its supply chain. Working with UBQ Materials, PepsiCo switched to reduced-carbon pallets, ordering 30,000 pallets that incorporate UBQ’s thermoplastic product.
September 2022 • Inbound Logistics 17
TAKEAWAYS Shaping the Future of the Global Supply Chain
Cold Is Hot The global cold chain market is a bright spot in the perishables business landscape. It was valued at $253 billion in 2021, and is projected to reach $437 billion by 2028, at a CAGR of 8.1%, according to a SkyQuest Technology Consulting report. Booming demand for medical supplies and food products, among other factors, is fueling growth. Still, challenges exist, the report says. More than $750 billion is lost each year to improper food safety handling, inefcient logistics, a dearth of proper facilities, and insufcient personnel training.
India, for example, loses $14 billion every year to poor warehouse management; that amounts to more than 35% of the country’s total agricultural produce. That waste is enough to feed the UK, Germany, France, and Italy for one year, the SkyQuest report nds. One possible solution: robots. “As the cold chain industry continues to undergo modernization, robots are likely to play an increasingly important role,” the report states. “They offer signicant benets for companies operating in this sector, and are likely to become even more popular in the future.”
18 Inbound Logistics • September 2022
Here’s what they had to say about the upcoming holiday season: • 6 in 10 logistics professionals are worried again this year about inventory shortages and 82% are worried about missing delivery windows. • 1 in 3 are preparing for the holidays earlier this year than they did last year. • Revenue projections are all over the map. • Nearly half of survey respondents say they will rent additional warehouse space or trucks. • The top three worries are fuel costs (82%), inflation (50%), and driver shortages (48%). • 4 in 10 businesses are still concerned about the business impact of another COVID wave during the holiday season; only 1 in 3 say they are prepared for it. “Inflation and fuel prices are mounting serious pressure on last- mile operators to optimize routes and find new ways to improve eciencies,” says Shailu Satish, co-founder and chief operating ocer of DispatchTrack. “Margins have never been this uncertain.”
Even though summer recently ended, it’s never too soon to think about the holiday shopping—and shipping—season in the retail and e-tail logistics world. How do supply chain professionals feel about shipping, and particularly last-mile delivery, leading up to the holiday season amid surging inflation and high fuel prices? Concerned seems to be the operative word. That’s according to the more than 130 logistics professionals who responded to The 2022 Last Mile Holiday Perspective, a survey conducted in July 2022 by last-mile dispatch provider Dispatch Track. HO HO HO, OH NO?
September 2022 • Inbound Logistics 19
SALES & LEASING TERMINAL TRACTORS & TRAILERS
Given everything that has transpired across the globe over the past two years, supply chain leaders are evaluating and executing changes to their supply chain/distribution networks as well as their sourcing and manufacturing strategies. That’s the key takeaway from a new Gartner survey, which polled 403 supply chain leaders during Q2 2022 to gauge how factors including supply constraints, ination, sustainability goals, and national industrial policies have impacted the strategies of chief supply chain ofcers (CSCOs). With their supply chains facing enormous pressure, CSCOs are adapting their networks to t this new environment. Many are making changes to the scope and scale of their supply chain networks ( see chart ). • 74% of CSCOs made changes to the size and number of locations in their supply chain network in the past two years. • 51% of respondents say they increased the number of locations while 23% say they reduced the number of locations. Many CSCOs are also switching up regional distribution. • 28% of respondents now describe their network as a hybrid Supply Chain Shift Work
regional model—a combination of local or regional elements in a global supply chain network. • This is closely followed by global models with regional final assembly (23%) and local-for-local networks (22%). Shifts are also afoot for CSCOs whose supply chains have a China presence, as well as those operating in Asia-Pacic (APAC) markets. • 95% of respondents are evaluating or executing changes to their China sourcing and manufacturing strategy; 55% of those have already acted on their plans. • 60% of respondents based in APAC view their home region not only as a supply base but as an end market. • 40% of global respondents consider APAC a supply base as well as an end market.
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20 Inbound Logistics • September 2022 FOOD AND BEVERAGE • PARCEL SHIPPING • AUTOMOTIVE • MANUFACTURING • HEALTHCARE CONSTRUCTION MATERIALS • RETAIL/CONSUMER PRODUCTS • ELECTRONICS • PAPER PRODUCTSPage 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132
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