Imports are likely to grow faster than the rest of the economy for the foreseeable future. More imports mean more DCs in more places, and ports are welcoming the growth.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
A short drive from the Garden City Terminal at the Port of Savannah, Ga., lies a complex of large warehouses in a development called the Savannah International Trade Park. Among them looms a new 1.7 million-square-foot distribution center owned and operated by IKEA, the popular and fast-growing home furnishings retailer.
The IKEA facility, which serves nine stores in the Southeast, typifies two trends in import-driven warehousing in the United States. First, major importers are building new warehouses in locations beyond the traditional import gateways, not just near the coasts but also well inland. And second, they're building them big. And IKEA's massive facility is not even the largest in the trade park: Nearby is a Target DC that occupies in excess of 2 million square feet.
What's driving those trends is simple enough: A surging tide of imports that shows no sign of receding. While imports may no longer be growing at the double-digit rates of recent years, they will continue to increase faster than the economy as a whole, predicts Paul Bingham of the economic consulting firm Global Insight. Bingham, who keeps a close eye on import trends to prepare the monthly "Port Tracker" report for the National Retail Federation, forecasts average annual import growth in the range of 5 to 6 percent.
As imports continue to grow, the demand for large facilities to handle them will grow apace. At the same time, the shift in warehouse locations from congested mega-ports to smaller ports and to locations farther inland will pick up speed. IKEA, Target, and other importers in the Savannah International Trade Park, it seems, have seen the future, and they are ready.
New gateways
One consequence of import growth is that much of the new import warehouse development now occurs far from seaports. The Inland Empire in California's San Bernardino Valley is a prime example. Although the Inland Empire's western border lies some 40 miles from the sea, the volume of goods coming through the nearby ports of Los Angeles and Long Beach has made it one of the fastest-growing import logistics centers in the nation.
Grubb & Ellis Co., a real estate services and investment management firm, expects the region to continue on that growth path. In its 2008 commercial real estate forecast for the Inland Empire, the company said the area would benefit from its proximity to the ports of Los Angeles and Long Beach, competitive rents, a space shortage in Los Angeles (where the vacancy rate is below 2 percent), and the availability of space to accommodate large warehouses.
The Inland Empire's experience is mirrored in major inland ports like Columbus, Memphis, and Chicago that boast excellent rail links to ports of entry. These and other inland distribution hubs are pursuing and winning new DC development that's directly related to the growth of imports.
Not everyone is looking inland, however. Many importers—especially the "big box" retailers—continue to build large DCs near ports on the Pacific, Atlantic, and Gulf coasts. Those ports have been more than happy to accommodate them.
The spurt in DC construction at ports located away from Southern California accelerated after 2002. That year, labor strife at the ports of Los Angeles and Long Beach, the traditional gateways for Pacific Rim imports, created enormous backups in supply chains nationwide during peak shipping season. LA and Long Beach have rebounded from the crisis and continue to attract huge volumes—last year, the Port of Los Angeles handled 8.4 million TEUs, while Long Beach handled 7.3 million. (The TEU, or 20-foot equivalent unit, is a standard measure of container volume.) Nonetheless, that experience— and forecasts of continued import growth—prompted some shippers to begin looking at alternative ports to reduce their risk of getting caught in the logjam should it happen again.
Furthermore, Bingham says, the big box retailers are looking to align their import facilities with their domestic distribution networks. That means their decisions regarding where to locate their warehouses and DCs will also depend on where their retail stores and their customers are located. That's leading national chains with thousands of stores—like Wal-Mart, Target, and Home Depot—to expand beyond a single import gateway.
Indeed, import growth has spread the wealth to ports large and small on all three coasts. North American ports tracked by the American Association of Port Authorities handled 48.7 million TEUs in 2006, up 35.2 percent since 2002. Just a few examples: On the Atlantic Coast, Savannah's volumes soared nearly 63 percent from 2002 to 2006, traffic at Hampton Roads (Va.) grew by 42 percent, volumes at New York and New Jersey increased by 36 percent, and traffic at Charleston (S.C.) rose 24 percent. On the Gulf Coast, Houston saw container traffic jump by 29 percent. On the Pacific Coast, Vancouver (B.C.) saw volumes grow by 48 percent, Tacoma (Wash.) saw traffic rise 41 percent, and Oakland (Calif.) reported that its volume grew by 40 percent. (Figures for 2007 were not available for all ports at press time.)
Ports come a-courting
One port that has achieved notable success in attracting distribution business is Savannah. In December 2007, the Savannah Morning News reported that the Savannah area had about 15 million square feet of warehouse space already in use, with another 3 million slated to come online this year and an additional 26.8 million square feet in the planning stages.
It's no secret why Savannah is so eager to attract import DCs. The port handled 2.6 million TEUs last year, a 20.6- percent increase over 2006—making it the fourth-busiest container port in North America. That may be just the beginning: Georgia Ports Authority Chief Operating Officer Curtis J. Foltz has said that the port expects to handle 6.5 million TEUs annually by 2018.
Savannah is far from alone in its pursuit of import warehouses, of course. The Portfields Initiative, a joint project of the Port Authority of New York/New Jersey and the New Jersey Economic Development Authority, is designed to promote development of underutilized and "brownfield" sites for ocean and airfreight-related warehousing and distribution. Another example: The ports of Tacoma and Olympia in Washington state are planning a new distribution park, the South Sound Logistics Center, which they hope will eventually include both import and domestic warehouses.
The new lineup
The idea of ports competing for import business is not new. It wasn't all that many years ago, before the boom in imports from the Pacific Rim, that East Coast ports led the nation in handling imports; Los Angeles first surpassed New York/New Jersey in container handling in 1989.
Now, though, the field of competitors is much larger and far more diverse. Big importers are seeking ways to manage soaring import volumes and better align their international trade networks with their domestic distribution systems. Many have chosen to address those issues by diversifying their port gateways to get closer to the end customer. That's why a new lineup of ports—whether along the coast or inland—will be welcoming the new, super-sized import warehouses for some time to come.
postcard from Prince Rupert
The newest container port in North America, Canada's Prince Rupert, opened for business last fall.
Kenneth B. Ackerman, president of The Ackerman Co., got a sneak peek and filed this report.
September 2007
The newest intermodal port in North America is located in the town of Prince Rupert on the north coast of British Columbia, just a few miles south of the Alaska border. When we discovered that a vacation tour would have us in Rupert (the locals omit the "Prince"), I took the opportunity to see the site, escorted by the port authority's manager of corporate communications. Our visit was in September, more than a month before the first containership was scheduled to call at the new terminal.
Everything appeared to be ready—the 52-acre pavement had been completed, four container cranes were on site, and dozens of reach stackers seemed set to begin moving containers from the road to the nearby rail spur. A large number of empty rail cars were also in place. Meanwhile, Maher Terminals of Elizabeth, N. J., was training Rupert's port workers at its New Jersey operation.
Some of the new port's operating advantages are impressive. Rupert is now North America's nearest seaport to Asia, one day closer than Vancouver and two days closer than Los Angeles. The Canadian National Railway (CN), which serves Rupert, offers a comparatively flat route over the Rockies, an observation we were able to personally verify during our rail tour.
An easy route to the east will be an asset. Since the CN also owns the Illinois Central Railroad, Rupert should be able to rapidly and effectively serve Midwest cities. The port authority claims that rail cars can move from Rupert to Chicago in a little over four days. Expectations are running high: In an article in the Memphis Business Journal last summer, supply chain consultant Cliff Lynch described the port as "the most promising option Memphis has seen in recent years."
At the same time, there are a few aspects of the new port that suggest caution is warranted. Rail is the only realistic option for moving intermodal containers here. There is no highway along the coast, and the only highway of any sort is a two-lane road that goes east to Prince George, B.C., before turning south to eventually connect with four-lane highways near Vancouver. For this reason, other ports that offer good trucking services as well as rail may be more attractive for many shippers.
Another cause for concern is labor. Rupert has experienced economic hardship because of lumber mill closures, and the population of about 10,000 is smaller than it was a decade ago. Local people understandably are excited about the prospect of jobs handling intermodal traffic. However, few places in North America have a more difficult history of labor relations than has British Columbia.
At the port authority, we were told that the likelihood of labor trouble was reduced because about half of the workers will be "First Nation," the Canadian term for native people, and that they are less likely to favor unions and strikes than are other groups. A business friend, a Vancouver native who once worked in the rail industry there, disagreed with that opinion; he believes First Nation employees present more disciplinary issues than do other groups. Further, other workers could still be prone to labor actions.
In the last analysis, the new port's success will depend on productivity—something a 2007 research paper described as "lackluster" in Canada. Several questions come to mind. Will the turnaround time for container ships be competitive with the best intermodal ports? Will port and railroad management achieve competitive productivity, or will their emphasis be on creating new jobs? A better appraisal of Rupert's success will be possible after a few dozen ships have moved through the port and after the railroad has moved containers to and from Chicago and Memphis.
Postscript
And how is Rupert doing these days? In December we talked with Tony Maddox of TBC Corp., a large marketer of replacement tires located in Memphis. When we spoke, his company had received six containers through the port and three more were in transit. The first of TBC's containers arrived at Rupert on Nov. 20, and they were at a ramp in Memphis on Nov. 28th. Total transit time from the Far East was 19 days, four to five days shorter than TBC's experience with other intermodal ports. Maddox was quite pleased with his first experience moving cargo through Rupert.
at the docks, deluge or drought
The rapid growth of imports means that the warehouses and DCs that handle them have plenty to do. Except when they don't.
That was one of the issues highlighted last year in "Import-Driven Warehousing in North America," a report sponsored by ProLogis, an international developer of warehouses and distribution centers. The study's authors, Thomas Speh, a professor of distribution at Miami (Ohio) University, and Arnold Maltz, a professor of supply chain management at Arizona State University, noted that one of the biggest challenges for import warehouses is the "extreme volatility" of daily workloads. "An import warehouse's backlog can surge from zero to 50 containers (or more) in a single day, depending on the pace of unloading, customs clearance, drayage, and the warehouse operator's own efficiency," they wrote.
Leonard Sahling, first vice president of ProLogis Global Research, agrees: "There are tremendous peak load problems," he says. "One of the major characteristics of these facilities is that one day they are working two or three shifts and have to bring in temp staff, and then other days things are quiet."
Making matters worse is the spotty accuracy and timeliness of import shipment information. That lack of visibility into when imports will arrive (and often, what goods the containers hold) makes planning labor and space utilization difficult.
Speh and Maltz found enormous variance in the level of visibility available to the warehouse managers they surveyed. That variance is itself a problem. "What the people in the warehouse are looking for is reliability in the data," Speh says. "The process is built for glitches, and when you have glitches, you build inventory …. When you have good information and know what's coming, then [the process] works as it should."
Some software developers insist that tools for inbound visibility are already at hand. GT Nexus, for one, offers an on-demand platform that collects data from all the parties involved in international trade transactions and disseminates the information in an easy-to-use format. Greg Kefer, director of corporate marketing, says that DC managers at companies that use the system have clear visibility into inbound container shipments.
Based on the results of the ProLogis study, such solutions are not yet in widespread use, at least at the warehouse level. Instead, managers interviewed by Maltz and Speh cope with inconsistent information in other ways, perhaps none of them ideal. For instance, companies that handle their own drayage may have drivers circle around a port until they are notified that containers are ready for release. When goods do arrive, the DCs unload containers based on outbound priorities.
Maltz says that some of the managers he interviewed are getting better visibility into the seaports' information systems than they once did. That gives them a better sense of when containers will arrive at their dock doors, but that solution remains imperfect.
Solving the visibility problem may be the most significant need for import warehouse operators today, especially since volatility will likely become more pronounced as larger containerships come into service. Achieving that goal will require a level of collaboration among global supply chain participants—including ocean carriers, customs brokers, and local drayage companies—that thus far has not been widely seen. Speh says, "Everyone has a key role. There are so many people involved, and if any one of them screws up, you've got a big problem."
Robotic technology has been sweeping through warehouses nationwide as companies seek to automate repetitive tasks in a bid to speed operations and free up human labor for other activities. Many of those implementations have been focused on picking tasks, a trend driven largely by the need to fill accelerating e-commerce orders. But as the robotic-picking market matures and e-commerce growth levels off, the robotic revolution is shifting behind the picking lines, with many companies investing in pallet-handling robots as a way to keep efficiency gains coming.
“Earlier in this decade and the previous decade, we [saw] a lot of [material handling] transformation around e-commerce and the handling of goods to order,” explains Josh Kivenko, chief marketing officer and senior vice president at Vecna Robotics, which provides autonomous mobile robots (AMRs) for pallet handling and logistics operations. “Now we’re talking about pallets—moving material in bulk behind that line.”
Kivenko explains that whether items are being packaged and shipped directly to a customer’s home address or moved as finished goods to a shipping bay for store delivery, those items are first moved in bulk in some way, often by human hands and with human-operated equipment. He describes warehouses as chaotic environments in which humans move pallets and cartons in multiple ways—up and down, side to side, from receiving to storage, from storage to shipping, or via cross-docking. Automation can help bring order to that chaos.
“What we’re trying to do is relieve some of the pressure [on the] humans [doing] this work,” Kivenko says of companies that develop pallet-handling robotic technologies. “At the end of the day, we’re trying to automate some of those flows, relieve labor pressure, save costs, and keep the goods flowing.”
But automated pallet handling isn’t right for every situation, so it’s important to understand the warehouse conditions required and the protocols and best practices needed to make it a win. Here are some guidelines for applying pallet-handling robots and gaining the most from your investment.
FIRST, UNDERSTAND THE TECHNOLOGY
Pallet-handling robots fall into four general categories, explains Rich O’Connor, vice president of storage and automation for Raymond West Group, a business unit of lift truck manufacturer The Raymond Corp. They include:
Palletizing/depalletizing robots, which are used to load or unload items onto and off of pallets, usually with the use of a robotic arm for picking and placing. Today, these systems are being increasingly integrated with automated storage and retrieval systems (AS/RS) to further streamline pallet handling in the warehouse, O’Connor explains.
Autonomous guided vehicles (AGVs) and autonomous mobile robots (AMRs), which are used to transport pallets within the warehouse. Often outfitted with lift decks or conveyors, or designed to tug or tow items, these robots move pallets from point A to B within a facility. AGVs, which often follow a marked guide-path or wire in the floor, have been around for many years, but the advent of high-performance guidance and vision systems is allowing them more flexibility today, O’Connor says. AMRs are self-guided vehicles that use software and sensors to navigate their way through the warehouse.
Forklift AGVs and AMRs, which can move products both horizontally, from place to place, and vertically, into and out of storage racks. They come in various styles—including stackers, counterbalanced trucks, reach trucks, and even very narrow aisle (VNA) vehicles for use in densely packed warehouses. These vehicles are more complex than those used only for horizontal transport, O’Connor explains. They must be “highly integrated” into the facility’s warehouse management system (WMS) or warehouse execution system (WES) so that they know precisely where to retrieve and deliver pallets within the facility.
Robotic pallet shuttles, which move pallets into, out of, and within dense storage racking. The Raymond Corp. describes such a system as “a standalone, automated deep-lane pallet storage system that utilizes self-powered shuttle carriages to move pallets toward the back or front in a racking channel. Shuttles are motor driven and travel along rails within a storage lane.”
O’Connor and others say that no matter which of these technologies you’re investing in, it’s important to remember that they are all part of a larger system designed to optimize operations throughout the warehouse.
“The expanding role of all these different styles working together is what’s amazing today,” O’Connor says.
SECOND, ENSURE THE TECHNOLOGY IS A FIT
Kivenko, of Vecna, also emphasizes the importance of pallet-handling robots working in concert, particularly AMRs and AGVs.
“The magic isn’t just that the robots are autonomous and driving by themselves. The magic is multiple robots—when you have a [whole integrated] system [in place],” he says. “[It’s] how the fleet operates autonomously and optimizes itself for continuous improvement. That’s where the exponential gains are. [It’s] not just about automating what a worker does; it’s about automating a system.”
But you can’t install these systems in just any warehouse and expect magic. Kivenko and others point to certain conditions that enable the best robotic pallet-handling outcomes, especially when it comes to transportation-based and forklift-type AMRs and AGVs.
“The robots that I sell are large-load machines with very expensive technology,” Kivenko explains. “They move material, generally, in larger facilities. And in order for them to produce a return [on investment]—because that’s the name of the game here—they have to be higher-velocity facilities.”
He says pallet-handling robots work best in large facilities running multiple shifts, usually more than five days a week. Wider aisles allow the equipment to move more freely through the facility and at higher speeds, to optimize efficiency and productivity. Strong Wi-Fi networks and clean, dry environments also help keep equipment running at top performance.
O’Connor agrees that pallet-handling robots are best suited to facilities with multishift operations, where they can ease labor constraints and boost productivity. And he says many customers are willing to extend the typical two- to three-year ROI period to five years in order to achieve those gains. But there is even more to it than that. O’Connor’s colleague John Rosenberger says customers must first step back and analyze their processes to ensure that, even if they have the right facility for pallet-handling AMRs or AGVs, they are moving material in the most efficient way to begin with.
“Many times, we find that the processes in place [are inefficient],” says Rosenberger, who is director of iWarehouse Gateway and global telematics for The Raymond Corp. He emphasizes the importance of analyzing existing data—from an equipment telematics system or similar—to determine the best path toward automation.
“Do you have congestion zones now?” he asks. “They’ll still exist if you automate [those processes exactly].”
THIRD, MAKE SIMPLICITY A PRIORITY
Another basic rule of thumb when implementing pallet-handling robotics: Keep it simple.
Andy Lockhart, director of strategic engagement for global warehouse and logistics process automation company Vanderlande, says that when designing a pallet-handling robotics system, “you want to minimize the processes you [automate]. When you can create [an automated system] that focuses on one task—for example, AMRs delivering pallets from a high-bay [storage rack] directly to the palletizing cell—you can do that efficiently and effectively. When you ask the AMR to do this and this and this … you are adding risk of failure.”
Lockhart’s colleague Jake Heldenberg advises customers to first test their target processes via pilot programs within the warehouse or DC. Heldenberg is Vanderlande’s head of solution design, warehousing, North America.
“If AGVs or AMRs for pallet handling are interesting [to a customer], the best thing to do is pilot one or two in an existing DC,” he says, explaining that the process can help companies troubleshoot, understand integration timelines, and gauge ROI. But pilot programs can add expense to a project, making it unaffordable for some.
“If that’s the case, then the best advice is work with a vendor who has experience integrating [the technology],” Heldenberg says. “Use their experience to benefit your business. You won’t have the same hiccups and challenges you would with a less-experienced vendor.”
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”