A number of disparate trade organizations, each of which focuses on a particular aspect of the wide-ranging world of logistics, have announced that they are joining together in a unified effort to help Americans in times of crisis.
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.
If you read this column with any regularity, you've heard us beat the drum before. The era of the functional silo is over, you've heard us preach. Optimizing the supply chain calls for nothing less than smashing the silos and building a single, enterprise-wide chain that stretches from source to customer. There's no shortage of evidence that this approach works. Some of the most successful companies in the nation cite a customer-focused supply chain integration program as a key to both top- and bottom-line improvements.
And now, apparently, the array of trade groups and associations that serve the profession are taking note as well. A number of disparate organizations, each of which focuses on a particular aspect of the wideranging world of logistics, have announced that they are joining together in a unified effort to help Americans in times of crisis. That coalition, which includes groups as varied as the Council of Supply Chain Management Professionals (CSCMP), the Warehousing Education and Research Council (WERC), the Material Handling Industry of America (MHIA), and the Material Handling Equipment Distributors Association (MHEDA), will soon launch the American Logistics Aid Network (ALAN). (See related news story on page 11.)
Created in response to last year's hurricanes along the Gulf Coast and the tsunami in the Indian Ocean, the ALAN network is designed to assist relief agencies in providing humanitarian aid following a disaster. Participants will lend their supply chain expertise and donate goods and services for disaster response.
Through ALAN, organizers will be able to call on the combined resources of thousands of companies across the country. Participants will help out in two ways: first, by helping develop the supply chain processes needed for disaster response before the next hurricane, flood or tornado hits; and second, by assisting relief agencies in the collection, routing and delivery of much-needed supplies in the aftermath of a disaster.
In the initial announcement, which took place at CSCMP's 2006 Annual Conference in October, Mark Richards, a long-time CSCMP member and one of the founding members of the initiative, explained that ALAN's mission is to bring parties together for the common good. Added Rick Blasgen, president and CEO of CSCMP, "We're the rail, truck, air, logistics, warehousing, material handling and supply chain services that can mobilize quickly to help deliver critical aid and supplies in the event of a disaster."
Bob Shaunnessey, executive director of WERC, reports that many of WERC's members were actively involved in charitable relief efforts when hurricanes Katrina and Rita struck the Gulf States in 2005. That spirit of giving is being taken to the next level by this more formal, cooperative initiative, he observes.
MHIA's CEO, John Nofsinger, agrees. "ALAN was founded by the associations that make the supply chain efficiently operate on a daily basis.When a disaster strikes, we believe that it is our unique responsibility to utilize these same resources and expertise to help ensure that the necessary aid gets where it is needed as quickly as possible."
But ALAN represents more than just a humanitarian relief effort. The willingness of the various logistics associations— be they transportation based, material handling based, or warehousing and distribution center based—to cooperate in this way points to something more. In a larger sense, the founding of ALAN indicates a newfound willingness among these associations—and we would hope, by default, their members—to work together in daily operations as well. The world of logistics, for so long mired in a silo-based mentality, has broken out. The profession is coming together.
In the end, we are quickly learning, supply chain excellence is all about working together—because together, we win.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.