For those who've been pondering the problem of how to keep goods and supplies flowing when disaster strikes, a tip sheet from software specialist Manhattan Associates may offer some help.
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.
Well, here it is. It's March, and in many parts of the country, we're eagerly anticipating the warmer days to come. At least we hope they're coming. It should be a given, right? It's always worked out that way in the past.
But nowadays, who's to say what the next season, or seasons, may bring? We don't need the cavalcade of news stories, opinion pieces and research reports warning of impending climate change to tell us something's afoot. Whether it's unseasonable warmth or arctic chill, reports have poured in from virtually every region of the country—even the world—about what can only be described as "freakish"weather patterns in the past 12 to 24 months. Take it from someone in New England who fired up the charcoal grill twice in the week between Christmas and New Year's Day. Something's not right here!
You can argue about the causes, but this at least is clear: global warming is upon us. And the effects aren't always as benign as a January thaw in New England. The flip side is the rising incidence of devastating storms, hurricanes, and other natural disasters that bring death, destruction and chaos.
Protecting people and property will always be their foremost concern, but business executives also worry about the implications of storms, earthquakes, hurricanes and floods for their companies' operations—particularly their supply chains. For those who've been pondering the problem of how to keep goods and supplies flowing when disaster strikes, a tip sheet from software specialist Manhattan Associates may offer some help. The company has posted five disaster-planning steps for supply chain executives on its Web site, www.manh.com, and they're well worth a look.
As you might expect, several of the tips center on ways to use information technology in disaster response. Sophisticated technology can go a long way toward blunting a storm's impact by providing the information that allows shippers to divert product shipments, place inventory in forward locations and anticipate potential spikes in demand. Call it weatherproofing your supply chain.
Among other advice, the Manhattan tip sheet urges supply chain partners— shippers, carriers and consignees—to make sure they're all working off the same real-time information. "Information transparency is critical to providing visibility into the movement of product and understanding the impact on operations,"Manhattan says. In addition, if adverse weather conditions lead to shortages of critical supplies in certain areas, as so often happens, tracking and visibility systems can prove invaluable in easing the situation.With a full and precise picture of their freight's whereabouts at any given moment, users can divert shipments to where they're needed most.
The company also notes that intelligence and responsiveness tools can help shippers anticipate and react swiftly to changing demand. Manhattan points to RFID as one of the technological tools that can prove enormously useful in this regard.With their real-time tracking capability, RFID tags provide instant visibility into product shipments throughout the supply chain, helping shippers keep products out of harm's way and directing them to where they can do the most good.
In addition, Manhattan Associates advocates using a single point of demand, rather than historical forecasts, to drive the supply chain. If your company is one of those enlightened organizations that's already using its advanced logistics capabilities as a competitive weapon, you should already be there. If you're not operating that way, you should be, and that's never more true than when the weather turns ugly.
The tip sheet ends with a reminder about the value of establishing a detailed emergency plan before disaster strikes. Prior planning, as we all know, is a key element in mitigating the damaging effects of hurricanes and other natural disasters.
The watchwords, then, are technology, planning and preparedness. Now's the time to be sure your supply chain is ready for whatever Mother Nature throws your way.
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.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
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.”