As both consumers and folks who rely on freight transportation, we're all aware of skyrocketing fuel prices. But you have to ask, why are we even in this predicament?
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
In what's developing into a tradition, my thoughts have again wandered this spring to matters that aren't strictly related to logistics but nonetheless touch all our lives (at least if we're U.S. citizens). Let's start with taxes. Boy, what a mess.
Like many of you, I spent the first decades of my career working for someone else. My taxes were deducted from each paycheck and handed over to Uncle Sam before I could ever miss the money. Before long, I had stopped noticing how deep my "uncle" was reaching into my pocket.
But now that I work for myself, it's impossible not to notice. As a partner in an LLC (limited liability corporation), I'm required to estimate my taxes and send a payment to the IRS every three months. That means instead of enduring a little blood-letting with each paycheck, I basically just open a vein each quarter.
Now that I have to write the IRS a check for several thousand dollars every three months, I can't avoid noticing the size of the tax burden. And, candidly, it is outrageous. But (and excuse the modern-day cliché) where's the outrage? Why are we so willing to hand over 30, 40, even 50 percent of our hard-earned dollars without complaint?
I suspect most of us are unaware of what's happening. And I have a modest proposal for bringing this outrage to the public's attention: Stop automatic withholding. Just eliminate it altogether. Instead, make every American pay his or her fine (er, income taxes) on a quarterly basis. I'd bet nothing would get the public's attention faster than having to write quarterly checks to the government for amounts that are double, triple or quadruple the size of their monthly mortgage payment. Put a system like that in place, and the outrage is sure to boil over sooner rather than later.
And another thing ...
As I sit here fuming over my quarterly tax payments, I'm reminded of another cause for outrage. And in this case, it's our own fault.
As both consumers and folks who rely on freight transportation, we're all aware of skyrocketing fuel prices. The increases have been (sorry) outrageous. But you have to ask, why are we even in this predicament?
Well, we know why. The talking heads on the Sunday morning news programs tell us that the shortages are due to problems in Iran, in Venezuela, and even here in the United States (largely because of hurricane-related damage to drilling platforms in the Gulf of Mexico).
But this isn't the first time we've found ourselves in this dilemma. Gas shortages date back to the early 1970s. Some of us certainly remember waiting in gas lines for hours. So why haven't we found ways to insulate ourselves from supply fluctuations by now?
It's not that it can't be done. In fact, the folks in Brazil have done it. While Americans simply reverted to their old ways once the spot shortages of the '70s had eased, Brazil got on the stick and put in place a long-term solution. It took 30 years to get there, but as of the beginning of this year, Brazil has declared itself energy independent. Using alternative fuels, most notably ethanol, the nation is able to meet all of its energy needs without having to import oil from anyone.
Think how different our lives would be if we could make foreign policy decisions without weighing the implication to our all-important fossil fuel feeds. Our representatives in Washington should take a closer look at what's been done in Brazil.
Perhaps they need to hear more from us about this issue (and the quarterly tax idea).What do you say, folks, time to spark a little outrage? I think we're long overdue.
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.
The autonomous forklift vendor Cyngn has raised $33 million in funding to accelerate its growth and proliferate sales of its industrial autonomous vehicles, the Menlo Park, California-based firm said today.
As a publicly traded company, Cyngn raised the money by selling company shares through the financial firm Aegis Capital in three rounds occurring in December. According to forms filed with the U.S. Securities and Exchange Commission (SEC), the move also required moves to reduce corporate spending for three months, including layoffs that reduced staff from approximately 80 people to approximately 60 people, temporarily suspended certain non-essential operations, and reduced or eliminated all discretionary expenses.
In the company’s view, autonomous vehicles are playing a critical role in transforming industrial operations by enhancing productivity and safety.
“This capital infusion strengthens our ability to fund operations, drive commercialization, and continue investing in groundbreaking autonomous vehicle technologies,” Lior Tal, chairman and CEO of Cyngn, said in a release. “With increasing demand for automation solutions, especially in the automotive, heavy machinery and logistics industries, this funding allows us to build on recent momentum, including our upcoming autonomous forklift launch and other strategic advancements.”
Editor's note:This article was revised on January 14 to include information from Cyngn on its finances.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”