We spend a lot of time figuring out the best way to move goods to market. Shouldn't we also be thinking about how to get people to work and make business travel more efficient?
Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
We don't get it. Again. This time, what has us puzzled is why people so often assume "logistics" is only about freight. The logistics components of our supply chain management professional organizations are all about moving goods, from node to node in the supply chain, from port to distribution networks, from wherever to market. We don't get into how best to move people—ever.
Why not? In Europe, the scope of logistics practice and research encompasses the transport of human beings. Not that Europe always has to be the model for U.S. practice, but addressing challenges and opportunities in both product and people movement seems to us to be not only natural, but necessary.
We're not necessarily talking about leisure travel, family vacations, visits to Mickey Mouse, or over the river and through the woods at Thanksgiving. But it seems logical to contemplate issues in how to get people to work, and in how to make business travel efficient and effective. The next level would entail how to bundle these folks into what transport modes to find the right balance of time, cost, and ergonomic considerations.
Choke points
In Billy Joel's words, "You may be right, I may be crazy," but all this people movement consumes enormous resources today. And whatever challenges we face right now will only intensify as economic recovery takes hold.
One of those challenges, of course, is how to accommodate the rising volume of both freight and passenger traffic on roads that are already near—or over—capacity. The highways are jammed at all hours of the day and night in logistics hub locations and on the main arteries of commerce. Many cities are plagued with crippling traffic standstills at any hour, and for no apparent reason.
Passenger rail is being touted as a solution in many localities, but that raises a whole host of other concerns. In some places, a toe-in-the-water approach to reintroducing passenger rail is to establish service using the same tracks that freight runs on. That might sound reasonable until you consider that the rail industry is already struggling with significant capacity and infrastructure constraints. The tier one railroads are double tracking and double stacking as fast as they can, but these projects require sizeable capital investments.
High-speed rail is also being promoted as a solution on the passenger side, but that seems highly impractical to us. In no way could track be shared with freight movement. Further, the lanes with sufficient population bases to make high-speed rail remotely feasible are very, very few.
Light rail systems (which make use of electric railcars) are also being widely endorsed for both intra- and inter-urban applications. Again, there is the capital requirement, which can run into the billions of dollars for even limited development. That reservation is followed by uncertainty about: 1) the length of the learning curve, i.e., how many generations would it take for light rail to gain widespread acceptance; and 2) whether people who won't ride buses in sufficient numbers to make them pay off will ever ride trains.
We don't want to give the impression that we're anti-train, or anti-solution. We love train travel, and use it whenever it is both available and a sensible alternative.
But we're also realists. Selling the public on mass transit will be an uphill battle. When passenger rail and buses were in their heyday, there was no interstate highway system and even the four-lane highway was a novelty. Air travel was a curiosity, with extremely limited capacity. The ability to change a flat tire was a requisite driving skill. Many families did not own even one automobile, and a three-car garage was unheard of outside the enclaves of the fabulously wealthy.
In sum, these old-time transport modes were not "alternatives," they were practical necessities used by relatively large numbers of people who had no other reasonable choices.
Today, the landscape has been radically altered. In point of fact, in many cities (somewhat excepting those with large commuting populations), mass transit has become the carriage of last resort for those who can't afford the preferred modes.
The whole ball of wax
Questions of public attitude aside, there's an umbrella issue, we think, of how to plan and solve problems in the complete universe of the logistics of moving people. What's going on with buses? How should long-distance and local buses be configured? What's the mix of styles and capacities for use in big cities, small towns, and long-distance travel? Are there dedicated-lane alternatives that make sense for all constituencies? What are the green impacts of decisions and alternatives?
Similarly, what about trains? What kinds make sense in what environments? How can they be paid for? How should they network/integrate? What are the real target markets? How can they be greener in addition to simply hauling more bodies at one time?
And on the road, again, what are the infrastructure needs specific to people movement? Can one solution make all the problems go away? If not, how can we mix and match alternatives with an eye toward adjusting the mix as conditions change?
Within vehicles, how can we—in market-attractive ways—design more purpose-built automobiles for commuting, local shopping, long-distance travel, group movement (e.g., car pools), and transport to multimodal terminals? How much greener can we get? How can we accelerate alternative fuel development?
One emerging concept is car-sharing. Zipcar is a nationwide (plus London and Vancouver) membership organization, a pay-per-use alternative to auto ownership and upkeep. Others include I-Go in Chicago, PhillyCar-Share in Philadelphia, and City CarShare in Northern California.
What about trucks? How long for hybrid and alternative fuel versions to leave the realm of noble experiment and become mainstream choices? How serious will we get—and how soon—about these options for heavy-duty over-the-road carriage? Can we afford another round of emission regulation that drives down fuel efficiency and drives up fuel consumption at a time of oil price volatility?
And along with these questions, is anyone thinking about—independent of funding mechanisms—the importance of a nationally integrated system of carriage for both goods and people, operating on a master-planned and maintained physical infrastructure, to domestic economic performance and environmental health?
And for our profession?
Whether the debate takes place at the national or local level, we are persuaded that any discussion of people logistics could benefit mightily from the energy and creativity of the professional logistics and supply chain community—and their professional associations. This community has been a critical part of re-ordering how we handle and move—and plan for—products and materials to the point at which we are world leaders in the field.
It seems that we ought to be seeing that we have common cause with the professionals specializing in people logistics, and that we ought to invite them into our big tent. Imagine the power and potential of adding our talents and insights to theirs (and theirs to ours).
Maybe the time has come to work together on options and solutions in moving people, integrating the resulting initiatives with freight movement programs and practices whenever their interests or venues coincide.
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
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.
Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.
Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.
The project coincides with Swiss regulations on autonomous driving that are expected to take effect next spring.
Referred to as “Planzer–Dynamic Micro-Hub w LOXO,” the project aims to address both sustainability issues and traffic congestion in urban areas.
The delivery vehicle, a Volkswagen ID. Buzz battery-electric minivan, will feature Loxo’s Level 4 Digital Driver navigation software, a highly automated solution that allows driverless operation. The van was retrofitted to include space for two swap boxes for parcel storage.
During the two-year pilot phase, Loxo’s Digital Driver will navigate a commercial vehicle several times a day from Planzer’s railway center to various logistics points in Bern's city center. There, the parcels will be reloaded onto small electric vehicles and delivered to end customers by Planzer’s parcel delivery staff.
Following the completion of the pilot phase, Planzer and Loxo will build on the program for rollout in other Swiss cities, the companies said.
The partners said the project addresses the increasing requirements of urban supply chains and aims to ensure the “scalability of their disruptive solution.” With largely emission-free delivery, it contributes to greater levels of sustainability for the city as a living space, they also said.
“The uniqueness of this project lies in the fact that it will have a direct impact on society,” Planzer’s CEO and Chairman Nils Planzer said in a statement announcing the project. “We didn't just want to integrate automated technology into existing systems, we wanted to develop a completely new concept and a new business model.”
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.