John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
Their peers in other industries may be kicking back their heels and enjoying the summer lull, but not those in the thick of the struggle to advance RFID education and research. They've been on the job from dawn to dusk, judging from the flurry of announcements regarding RFID research and education issued in June and July.
At least some of the activity is a response to a looming shortage of supply chain professionals with expertise in various aspects of RFID technology. In a recent survey of Computing Technology Industry Association (CompTIA) members, 80 percent of the respondents indicated that professionals skilled in RFID were already in short supply. That problem is expected to worsen in the next three to five years, when an estimated 60,000 businesses will face RFID mandates from their trading partners.
To help fill the gap, a committee of RFID experts has been busy developing a new certification program, CompTIA RFID+, which will validate candidates' expertise and skills in areas like installation, maintenance, repair and upkeep of RFID hardware and software. That project advanced to its next phase last month when CompTIA announced that it had launched an online survey designed to gather input from an expanded field of industry experts.
To participate in the CompTIA RFID+ Blueprint Survey, potential respondents must have experience in RFID technology, such as installing and implementing RFID systems. The survey is available online at: https://repeto.com/RFID.
Though the CompTIA RFID+ certification program won't begin until late 2005 or early 2006, other educational opportunities are available right now. For example, DeVry University's Center for Corporate Education announced in July that it had begun offering both day and evening courses at its Arlington, Va., and North Brunswick, N.J., campuses. The first to be offered is a 30-hour foundation course that focuses on providing business and technology professionals with a basic understanding of RFID. The courses are being developed in cooperation with the Cambridge, Mass.-based RFID Technical Institute (RTI). A series of advanced and vertically specialized RFID courses are planned.
The programs offered by DeVry University and CompTIA are aimed at professionals already working in the field. But schools in the business of educating graduate and undergraduate students are hardly sitting on the sidelines. They're busy both creating RFID education programs and building sophisticated research labs where students can gain hands-on experience. For example, in June, Texas A&M announced that it had found a corporate sponsor for its new RFiD2 Laboratory. GlobeRanger, a provider of RFID, mobility and sensor-based solutions, has provided its iMotion platform to the new laboratory to help students learn about RFID as well as gain hands-on experience with the software infrastructure needed for applying RFID in a real-world environment. The lab has already started a research project using RFID to manage Texas A&M's Cadet uniform inventory and track the 32,000 parking permits the school grants each year.
June also saw the official opening of the University of Arkansas' $2 million RFID Research Center, a sub-unit of the Information Technology Research Institute at the school's Sam M. Walton College of Business. The laboratory will primarily conduct research into the most efficient use of RFID and other wireless and sensor technologies throughout the supply chain, with special emphasis on the retail supply chain.
The center's director, associate professor Bill Hardgrave, says that it's a multidisciplinary effort within the university, drawing on academic expertise as diverse as engineering, agriculture, law and political science. The center also draws on the financial, technical and business acumen of its 24 sponsors—including one in its own backyard: Wal-Mart.
consumers aware, but still wary, of RFID
The fourth wave of the RFID Consumer Buzz study among 8,400 consumers shows consumer awareness of RFID continuing to climb. In the most recent survey, conducted in June 2005, 43.6 percent expressed some familiarity with the technology, a big leap from the 28.2 percent recorded in September 2004. As its profile rises, RFID technology's reputation appears to be improving as well, with two respondents pronouncing it "a good idea" for every one who says it's "not a good idea."
Concerns that retailers would use RFID information for more than product tracking decreased this quarter as well. Compared to previous quarters, when 67.0 percent were somewhat or very concerned about information being shared without their permission, just 58.7 percent voiced concerns about privacy in the most recent survey.
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.