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.
The conventional wisdom says that an economic slump is no time to try to build up a trade association's membership or launch a series of bold new initiatives. But apparently Joel D. Anderson either never got the word or chose to ignore it. Since taking the reins of the International Warehouse Logistics Association (IWLA) three years ago, Anderson has worked steadily to inject a new sense of purpose into the venerable organization. He has revitalized IWLA's government affairs program, expanded its education offerings, and—perhaps most impressive of all—implemented a membership recruitment and retention program that led to positive financial growth in 2009.
Anderson, who serves as the group's president and chief executive officer, has long experience in the association world. Prior to joining IWLA, he spent 28 years with the California Trucking Association (CTA), the last 13 as executive vice president and CEO. Before joining CTA, Anderson was an economist with the California Public Utilities Commission. He has a community college teaching credential in marketing and distribution, and has served on state and national panels on transportation, goods movement, and mobility.
Anderson spoke recently with DC Velocity Group Editorial Director Mitch Mac Donald about the challenges facing IWLA's members, the shifting regulatory winds, and what shippers might not know about 3PL services.
Q: Could you start by telling us a little bit about your background and how you came to be where you are today? A: I graduated from UCLA in 1970 with a bachelor's degree in economics and then went to work as an economist for the California Public Utilities Commission, which regulated trucking in those days. I spent six or seven years with them, participating in rate-making and regulatory proceedings. At one of those proceedings, the head of the California Trucking Association's research department saw me in action. He offered me a job with the group, which I accepted.
I started out in the research department, and 15 years later, wound up running the whole organization. During my time there, I grew the finances and grew the membership in a trial-and-error way. I learned through the process how to run a pretty good government affairs shop and a pretty focused industry association.
I took a medical retirement in July 2005 when I had surgery for cancer. Afterwards, while I was sitting around trying to decide what to do next, I put my resume on the American Society of Association Executives' Web site, and it just so happened that IWLA was searching for a new president and CEO at that time. The search firm picked up my resume. I went through the process, got interviewed, and then received an offer to come here.
I started with IWLA in April 2006. In the first year, we grew a little bit, and in the second year, 2007, we grew substantially. 2008 was a retrenchment year—a time for realigning, refocusing, and restructuring the organization. In 2009, we began growing again, so I feel real good about the changes we made in 2008 to give us a better foundation to build on.
Q: Who are IWLA's members? A: I would say that facility-based third-party logistics service providers are the core of our membership. They range from the company that operates a single 50,000-square-foot warehouse all the way up to industry heavyweights like UPS Supply Chain Solutions.
Over the years, our members have gotten more and more involved in value-added services, so that the warehouse is not just a static facility that is racking goods, but an operation that handles all kinds of subassembly, kitting, packing, and order fulfillment tasks. I just toured a warehouse in Indiana where I'd say at least 15 percent of the square footage was devoted to conveyor racks, assembly lines, and Internet order fulfillment—you know, something you would not have seen 15 years ago.
Q: What are the key challenges your members face today, and what is IWLA doing to help them in that regard? A: There are several issues. One is a concern that probably wasn't on the radar screen with any frequency two years ago but in today's business climate, has become a growing problem for our members—the creditworthiness of their customers, the shippers or beneficial owners of the goods stored in the warehouse. We're seeing more problems with late payments and sometimes bankruptcies. So, we're getting more questions from members about the warehouse lien. Specifically, they want to know about the proper documentation and execution of the warehouse lien to protect their interests if, in fact, a customer goes into bankruptcy.
We're also getting more questions in these tough times on how to market: how to get your name out there, how to build your brand, how to take advantage of social media to market your services, and how to differentiate yourself in the marketplace.
We've done a number of things in response to those questions. For one thing, we developed the Logistics Services Locator (LSL), a free search engine that lets customers search for an IWLA member by location, company, keyword, and so on. We put a lot of effort into that and advertise it to the shipping community.
I also have developed a relationship with a consultant who specializes in 3PL marketing, Chip Scholes. He has made himself available to our members for help developing their marketing campaigns.
Basically, we're trying to help our members understand that in order to market their services successfully, they first have to sit down and analyze who they are and what they do better than anybody else. When times were good, people forgot that because freight came their way. But now, you'd better be able to deliver a clear message about who you are, what you bring, and why people should do business with you.
Q: What else do you offer in the way of member support? A. We also offer training and education. Our education programs focus on ways to make your company more profitable. We have seven live classes every year plus webinars—all C-level oriented.
In addition, we have really ramped up our government affairs and advocacy work. We feel that the days of deregulation are over. If the government is going to look at more aggressively or intrusively regulating the supply chain, we want to be there to try to make sure those regulations working their way through Congress and regulatory agencies won't negatively affect trade and commerce.
Q: What does the future hold for your members—both in the near term and the long term? A: It looks like people are starting to move inventories. You know, our industry totally relies on consumer behavior. The long and short of it is, if consumers buy, our people do well. If consumers don't buy, our people don't do well because it is velocity through the warehouse where our guys and gals make the money. I mean, storage is nice, but it's their move into value-added services that has significantly increased our members' role in the supply chain, and that is influenced by consumer behavior.
To a great extent, two items affect the long-term profitability of our members. One is regulations on international trade and commerce. In other words, how free is free trade? If international trade can flow freely, then we have an opportunity to be real creative in helping our manufacturers and shippers outsource, resource, insource—you know, whatever it takes to get the right amount of the right product to the right customer on time. Number two is encouraging our consumers to buy things. Almost everything else is secondary to that because if consumers are going to buy, then freight is going to move and we are going to have an opportunity to make money.
Q: What advice would you give a young person who's interested in pursuing a career in the logistics profession? A: I'd tell them it's all about following up and following through. Do what you say you're going to do and then let people know you did it. Reliability is probably the number one thing in success because reliability builds trust.
Q: Recognizing that a lot of our readers are customers of your members, is there anything else you'd like to share with them? A: I think the major point I'd like to make to your readers is how inventive and creative today's 3PL is, so that if they haven't looked at that—at letting that 3PL at least examine their supply chain for ways to reduce costs and boost order fulfillment performance—they should, because the entrepreneurs in our business are incredibly creative. That is what is so thrilling about being in this business. The people doing supply chain fulfillment now are just so incredibly, incredibly creative. The way they are using technology, the way they are managing their work force. It is just fun to watch. So if they haven't tried it, I would suggest your readers put a toe in the water and give it a try. I think they will be very impressed with the results.
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 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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.