Pilot cleared for takeoff. DHL and IBM are collaborating on a pilot RFID project. Under the program, RFID readers will be staged at strategic points along the DHL transport chain to collect data on packages moving through the system. The companies expect the pilot will result in improved shipment visibility and eliminate inbound and outbound scanning requirements by 90 percent. IBM is the project manager and integration partner on the initiative.
Big Blue also has another deal in the works. IBM has signed a long-term contract to provide indirect procurement services for Solectron Corp., which offers electronics manufacturing and integrated supply chain service. IBM will manage more than $1.2 billion per year of indirect spending on various services in 17 countries.
All the news that's fit to handle. The Denver Newspaper Agency, publisher of The Rocky Mountain News and The Denver Post, has selected HK Systems to provide material handling equipment for its facility expansion. The project includes a two-aisle automated storage and retrieval system and HK's Material Tracking and Control System.
Swisslog is it! Coca-Cola Amatil, Coca-Cola's largest bottler in the Asia Pacific, has awarded Swisslog a contract to design and oversee construction of a fully automated distribution center to be located next to one of its bottling plants in Auckland, New Zealand. The DC, slated to open toward the end of next year, will replace five outside warehouses. Coca-Cola Amatil is headquartered in Sydney, Australia.
Spreading out the tent. Cabela's, a hunting, fishing and outdoor equipment retailer, has awarded Bastian Material Handling a contract to provide a put-to-light system and sortation equipment for its distribution center in Wheeling, W.V. The $3.6 million project is part of an expansion that will add 576,000 square feet to the facility. Bastian also installed the material handling systems when the DC first opened two years ago.
Supplying the daily chocolate fix. Nestle Chile, a subsidiary of the food and beverage titan Nestle, has awarded a distribution and transportation management contract to Ryder System Inc. Under the multi-year agreement, Ryder will manage two multi-customer distribution centers with a combined 400,000 square feet, and manage outbound transportation of 60 to 80 vehicle loads per day to 600 of Nestle's customers throughout Chile.
Colors running. Tronox LLC has contracted with Schneider Logistics to provide integrated transportation and freight management services for its manufacturing sites in the United States. Tronox LLC is a part of Tronox Inc., which is one of the world's largest producers of titanium dioxide pigment.
Taking off. The Boeing Co. has chosen New Breed Logistics to provide logistics support for the manufacture of Boeing's newest aircraft, the 787 Dreamliner. Under the contract, New Breed, based in High Point, N.C., will receive, store, provide inventory control, kit, package, distribute and transport parts, tools and supplies within Boeing's Everett, Wash., facility, where the new jets will be assembled.
After much contemplation ... One of Japan's largest supermarket chains, Zen Nippon Shokuhin, has selected Retalix solutions to manage its supply chain. Included in the deal are StoreLine POS and store operations applications, the StoreLine hosting system and the Retalix Loyalty system. Zen Nippon Shokuhin operates 1,000 stores across Japan.
Raising the Standard. Standard Transportation, a thirdparty logistics and warehousing service provider, has chosen Provia's FourSite and ViaView supply chain execution solutions to help manage its warehouse operations. Standard Transportation operates four warehouses in Joplin, Mo., totaling about 500,000 square feet.
Stop-gap measures. J&J Snack Foods has installed Castell's Salvo dock system at its Pennsauken, N.J., warehouse. The Salvo system locks out a trailer at the dock and then interlocks it with the dock door to ensure that the trailer cannot leave unless the door is closed and the dock attendant is safely inside the building.
Go West. Regional carriers New Penn Motor Express and USF Reddaway have teamed up to provide a new westbound transcontinental service. The collaboration links New Penn's Northeast operations (headquartered in Lebanon, Pa.) with Oregon-based USF Reddaway's operations in the Pacific Northwest and Rocky Mountains. The two companies have been providing a similar eastbound service since last October. Both companies are subsidiaries of YRC Regional Transportation.
Wally world. Sortation equipment manufacturer GBI is the exclusive U.S. and South American distributor of the Wally Cross Belt Sorter. The sorter handles items weighing up to 100 pounds at speeds of up to 500 feet per minute.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.