Performing to the Maxx. The TJX Companies, parent of off-price retail clothing chains T.J. Maxx and Marshalls, has announced plans to implement RedPrairie's Workforce Management solution. TJX will use the DLx Labor planning and reporting system, which is part of the Workforce software suite, to schedule associates in the company's distribution centers, based on order fulfillment requirements. The software calculates the time necessary to complete the work based on previously agreed-upon standards and reports back to workers and supervisors on progress toward the goals.
Deere to its heart. SmartOps Corp., which provides enterprise-class supply chain optimization software, has entered into a commercial agreement with Deere & Co., the manufacturer of John Deere tractor products. The company will use the SmartOps Multistage Inventory Planning & Optimization software solution for its Commercial and Consumer Equipment Division. SmartOps has worked with Deere since 2003, achieving an $890 million reduction in finished-goods inventory and an increase in on-time shipments from factories to dealers.
HP IPG, the Latin American division for Hewlett Packard, has also selected SmartOps for its supply chain optimization software. The solution will help HP in Latin America determine the optimal inventory and product availability plans.
Why FKI loves New York. The U.S. Postal Service has awarded one of the largest material handling contracts it has ever awarded to FKI Logistex. The deal includes the design and implementation of a bulk and tray mail sorting and distribution system, as well as an airline receiving concourse, at the JFK International Service Center at New York's JFK Airport.
Across the Hudson River from JFK, FKI will be installing its Condor aisle-changing crane system at Preferred Freezer Services' warehouse in Newark, N.J. Preferred Freezer Services is a third-party logistics and freezer storage company that specializes in seafood products. The FKI contract totals $2.3 million.
Pallets-a-plenty. Procter & Gamble has renewed its contract with CHEP for pallet pooling in the United States. P&G
has been using CHEP pallets since the pool was created 14 years ago. Pallets full of P&G products are delivered daily to supermarkets, mass retail stores, food service providers, drug stores and convenience stores.
In other news, the Dean Specialty Foods Group is also joining the CHEP pallet pooling system. The company distributes pickles, relish and non-dairy creamers.
Down Argentine way. Terminal Zarate, a cargo port located outside of Buenos Aires, Argentina, has replaced its paper-based inventory system with a mobile computing solution from Psion Teklogix. The system provides employees with real-time information, which decreases picking times and increases productivity and inventory accuracy.
Striking a balance. Avnet Technology Solutions is implementing the Timogen Decision Manager from Timogen Systems. The Timogen Decision Manager helps manufacturers and distribution companies identify and resolve supply/demand imbalances across an extended supply chain.
The future is plastics. Cartonplast and Orbis Corp. have created a joint venture known as CORBI Plastics. The new company, to be headquartered in DeForest, Wis., will manufacture plastic divider sheets and manage pools of reusable plastic pallets, top frames and divider sheets that protect food, beverage and industrial products during processing, storage and distribution.
New bookings for Radio Beacon. Canadian Book Depot, an online retailer and distributor launched last June, has deployed Radio Beacon WMS in its warehouse in Mississauga, Ontario. The warehouse management system provides an on-demand inventory of its books. Radio Beacon has also installed a new warehouse management system for Del-Nat Tire Corp., a private-brand tire distributor. The WMS has been installed in the company's 500,000-square-foot DC in Memphis.
Cheers! City Brewing Co., a contract producer of alcoholic beverages, has selected HighJump's Supply Chain Advantage suite to manage its fast-growing distribution operations. City Brewing runs five high-volume distribution centers that process millions of cases of beverages annually. The company will use the software for its warehouse and yard management.
Well grounded. The Neptune Group, a garden supply e-tailer, has selected DHL for its ground deliveries. The company, which sells lawn and garden equipment, pond liners, waterfall pumps and pet supplies exclusively through eBay, will use DHL to provide express and ground delivery of these products directly to consumers and retail stores. DHL has also been selected by Airbus to handle shipments of spare airline parts at three facilities in France. In addition, DHL will help ensure that parts arrive on time for assembly of Airbus's A380 aircraft.
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.”