David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
The Problem: Golf cart maker Club Car needed warehousing software and it needed it fast.
Last May, the company decided to end its relationship with a 3PL and bring its receiving, staging, and sequencing functions back in house. It found a suitable warehouse for lease about 15 miles from its manufacturing plant in Augusta, Ga., but that left the question of what warehouse management software (WMS) it would use to run the operation.
The Players
Customer: Club Car (a division of Ingersoll Rand) Primary business: Manufacturing golf carts, utility carts, and other electric vehicles Headquarters: Augusta, Ga.
What Club Car needed was an application that not only offered receiving, staging, and sequencing functionality but could also be integrated with its Oracle enterprise resource planning, manufacturing planning, and financial systems. And with a September start date for the new arrangement looming, the software had to be something Club Car could get up and running in a hurry.
The Solution: Club Car found the answer to its problem in RedPrairie's On-Demand Warehouse Management solution. As the golf cart maker saw it, the system met its needs on all counts. To begin with, the software offered the functionality Club Car was looking for. And because it's delivered on an on-demand basis, the app promised quick and easy deployment as well as hassle-free integration with Club Car's other systems.
In fact, that promise of quick and easy deployment is one of on demand's primary attractions for users. Under this business model, the user essentially "rents" an application from the vendor, which hosts the software on its own servers. The user obtains access to the application via a standard Web browser; there's no software to install or maintain, and there's no need for costly integration work. As a result, on-demand software deployments typically can be completed in a matter of weeks or even days.
In Club Car's case, deployment was as quick and easy as promised, says Tracy Vance, the company's chief information officer. "It really was perfect for us," says Vance. "And it was easy to implement quickly. That was the primary driver for us."
It also proved to be a good decision financially. With on-demand solutions, users avoid the hefty upfront costs of buying software licenses; instead, they pay relatively modest monthly or usage fees. Vance estimates that his monthly fees over five years will be about one-third of what he'd pay for a traditional warehouse management system.
As for how it's working out to date, Vance says he hasn't had any problems using the system remotely. However, he does not yet know whether this will be a long-term solution for Club Car or simply a stepping stone to something else.
"It has been a good solution for us so far and has gotten us from A to B," Vance says. "But our goal is C. Will it get us to C?"
He also admits to some concerns about what he sees as a still-unproven business model—one that forces the user to rely on someone at a remote location to ensure the system won't go down when the user needs it most.
"The most important thing for me is for it to be there when I need it," Vance says. "I will be anxious to see where they take ... this product in the future."
So far, however, the WMS appears to be making the cut. Where performance in concerned, Club Car has found the on-demand system to be on par with traditional warehouse software offerings.
Editor's note: At some point, almost everyone needs to call on outside expertise—a consultant or a product/service supplier that can bring experience with other companies to bear on your situation. That's why we're launching our new "ProblemSolved" feature this month. Each of these brief case studies highlights a logistics- or warehouse-related problem experienced by a company like yours, and explains how a supplier worked with that company to resolve it. We hope these examples will help you figure out how to make your thorniest problems history.
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"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.
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.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.