Page Siplon, who as director of Georgia's Center of Innovation for Logistics built the Georgia Logistics Summit
into one of the country's foremost logistics events, said today he is resigning to become CEO of Team One Logistics,
which helps companies recruit and manage commercial truck drivers and other personnel.
Siplon starts at Team One on Jan. 15. He will relocate from Savannah to Alpharetta, Ga., a suburb north of Atlanta where
Team One is based.
Siplon said he would remain involved in the final planning stages of this year's summit, to be held March 31 and April 1
in Atlanta. He will also serve as the event's master of ceremonies. Sandy Lake, associate director of the Center of Innovation
for Logistics, will handle all of the center's efforts, Siplon said in a letter dated today.
In 2009, the first full-day summit attracted 450 attendees.* Last year, it hosted 2,200 attendees from 38 states and 11 nations, making it one of the largest logistics events in the U.S. Siplon said that attendance for this year's event is expected to approach 2,500. It cannot exceed that number because the main ballroom at the Georgia World Congress Center, the largest such ballroom in the state, cannot seat more than 2,500 people, he said.
Though the event is state-run, its agenda and activities were developed
with significant input from the private sector. It is believed no other state runs a logistics event on such a large scale.
At the outset, Siplon shrewdly set the registration fee low in order to draw a critical mass of attendees. Initially, many of
the attendees came from Georgia or from the Southeast. As attendance grew and the summit gained visibility, public and private
sector executives from across the country and outside the U.S. sought to get involved.
Siplon was one of DC Velocity's 2012
Rainmakers. The Center of Innovation of Logistics is part of the Georgia Department
of Economic Development.
Editor's note: An earlier version of this article incorrectly stated that the first year of the Georgia Logistics Summit was 2010. It also did not include the projections for this year's attendance.
For players in the drug distribution business, the countdown is on. In less than two months, every business involved in the pharmaceutical supply chain must be fully compliant with the Drug Supply Chain Security Act (DSCSA)—a 2013 law containing strict traceability requirements for the distribution of certain prescription drugs. Over the past decade, the DSCSA has been implemented in phases, but now the clock is running out. The law takes full effect on Nov. 27, barring any further adjustments or delays.
Among other measures, the DSCSA requires drug manufacturers to affix a unique product identifier, essentially a barcode, to every package so it can be tracked and traced during its journey through the supply chain. To thwart drug counterfeiters, the new law further requires wholesalers and drug dispensers to verify the validity of products they handle to assure they are genuine.
Is the pharmaceutical industry ready for all this? To find out, we spoke with Elizabeth Gallenagh, general counsel and senior vice president, supply chain integrity at the Healthcare Distribution Alliance(HDA), a national organization that represents U.S. health-care distributors. In addition to serving as HDA’s chief legal officer, Gallenagh is also the group’s primary expert on prescription drug traceability, supply chain safety and integrity, distributor licensure, and tax issues. She is a graduate of the George Mason University School of Law and George Washington University.
Gallenagh recently spoke with David Maloney, **{DC Velocity’}s group editorial director, about the enactment of DSCSA for an episode of the “Logistics Matters” podcast.
Q: First of all, can you tell us a little bit about the Healthcare Distribution Alliance?
A: Yes, the Healthcare Distribution Alliance, or HDA, is a national trade organization representing pharmaceutical distributors, also known as wholesalers. We have about 40 members that purchase drugs from manufacturers. They store the products in their warehouses and then fill orders for pharmacy customers throughout the country.
Q: The Drug Supply Chain Security Act will go into final effect in November. What’s the intent of the legislation?
A: The Drug Supply Chain Security Act—or as we call it, the DSCSA—is a law that was enacted in 2013. Its intent was to put together a national framework for drug supply chain security, essentially to enable a tighter, safer, more secure supply chain for the domestic U.S. market.
It involves all trading partners and ultimately will create an interoperable system that enables investigations by tracing a product with every transaction or sale of that product throughout the supply chain, down to the provider level.
Q: What are the law’s major requirements?
A: The law was actually phased in over a period of about 10 years. Many of the major requirements went into effect throughout that initial 10-year period—things like requirements mandating that manufacturers serialize their products and stipulating that trading partners only do business with other authorized trading partners. Authorized trading partners are defined as those that are duly licensed or registered with the Food and Drug Administration (FDA) or licensed by the states.
It also requires tracking of product with every transaction. A transaction is defined as a sale of the product, essentially from one authorized trading partner to another. And as we progress into the final phase, the law will also require serialized data, basically transaction information at the serial-number level that moves with the product through every transaction throughout the supply chain.
Q: You’ve said that the industry has had years to ramp up to comply with the law. Are our pharmaceutical supply chains ready for the final phase?
A: I think that’s still the $64,000 question. I can speak for our members, who have been doing everything in their power to get their own systems and processes ready to receive the serialized products and data, and then to transmit that serialized data with the product to their pharmacy customers.
That said, there are still some gaps in the system. We have been in a “stabilization” period that expires on Nov. 27. During this period, everybody has been testing and bringing product and data transactions live into production. I will tell you that many are ready, but there are still bugs that are being worked out as we race toward November.
I should also note that on Aug. 19, the HDA sent a letter to the FDA stating that “despite a concerted effort, some in the supply chain appear to remain short of reaching our joint goal of complete implementation.” In its letter, the group urged the FDA to “take immediate action to forestall potential disruptions to the drug supply chain and patient care that could stem from incomplete implementation of the enhanced drug distribution security (EDDS) requirements” and asked the agency to adopt “a phased, stepwise approach” to implementing the requirements in order to avoid disruptions to the movement of drugs through the supply chain.
Q: Will penalties be imposed on companies that fail to meet the deadline?
A: There will be penalties. But it’s important to note that the DSCSA is really about setting up the framework for tracking and tracing products—so that a manufacturer will only be permitted to sell its product downstream if it is a serialized product and the manufacturer can transmit the corresponding serialized data with the product. And then a distributor can only receive that product and purchase it if it has the corresponding data.
Q: Of course, this is only possible if you have the right technology in place to monitor and track drugs as they move through the supply chain. What kind of technologies are being deployed to make this possible?
A: The key to all of this is the barcode, which is mandated under the law in terms of the way that product is serialized. Everybody in the supply chain has to have the capability to utilize the barcode. If you’re a manufacturer, you have to incorporate that 2-D barcode with the serialized data into that product’s label. And that should already be in place under the first phases of the law.
Downstream partners will have to be able to read that barcode and import that data into their systems. This also enables verification of the product at the unit level.
In addition, we’re also deploying what we call EPCIS [a global data-sharing standard developed by the global standards organization GS1 that allows businesses to capture and share information about the movement and status of goods]. That is the backbone for getting all of this serialized data flowing to all of the requisite trading partners throughout the supply chain.
Q: As we learned during the push to distribute Covid-19 vaccines, a good number of pharmaceutical products must be temperature- or humidity-controlled. Will these new regulations help ensure that they’re properly handled as they move through the supply chain?
A: The DSCSA doesn’t speak specifically to temperature controls. However, there are other parts of the law [the overall Drug Quality and Security Act, which includes the DSCSA as well as the Compounding Quality Act] that do require those controls to be in place. That said, the DSCSA does require affected parties to do business with authorized trading partners. And in order to be an authorized trading partner, you have to adhere to temperature controls and safety rules for products, product handling, etc.
Q: Many of our pharmaceuticals are manufactured overseas, in China and India, for example. Do foreign manufacturers have to comply with DSCSA requirements?
A: If a foreign entity is producing product for use in the U.S. domestic market, the product has to be approved by the FDA. And it also has to meet DSCSA requirements.
Q: We hear a lot about counterfeit products infiltrating the drug supply chain. Will these new regulations reduce the number of counterfeits in the market?
A: We certainly hope so. All of this really started [as an effort to combat the rise in] counterfeit products and transactions back in the early 2000s. Obviously, the idea is to deter counterfeiters from infiltrating the U.S. drug supply chain. But really, what the law does is provide tools for the FDA and regulatory agencies to investigate suspect and illegitimate product, as well as tools that will enable the trading partners that are involved in the transactions to identify suspect product, flag it, quarantine it, investigate it, and deem it OK or deem it illegitimate based on their investigations.
So it really gives some investigatory and prosecutorial tools to the agencies. And it puts a process in place with the technology and serialization to pinpoint whether something is good product through verification with the manufacturer or through tracing of the product data that has accompanied the product throughout its journey through the supply chain.
Q: Drug prices in the U.S. are notoriously high compared with prices in many other countries. Will these new requirements add to the overall cost of supplying medication?
A: I haven’t seen any data that alludes to DSCSA compliance adding to drug costs. It’s an industry that’s built around efficiency, and so my sense is that [pharma industry players] probably have also built in plans over the last decade to absorb some of those costs. That said, the law also established a national tracking and tracing framework, where before we had a 50-state patchwork of regulations. So there would likely be some efficiencies gained from following a single, nationwide protocol, even though it’s a huge undertaking, versus doing it 50 different ways across the country.
Q: Now that DSCSA is nearing full implementation, how are your members feeling about the process?
A: Our members have been committed to this from the very beginning. We were very involved in negotiating on the legislation and pushing these concepts. We really have been working toward implementation from the get-go and throughout this entire 11-year period; we very much want to get to full implementation. But in the beginning, there may be some hiccups. We may hit a few bumps along the way.
A colleague of mine used to say, “We don’t know what we don’t know.” And I think that at each phase as we deploy new technologies and new processes, we will learn new ways to do things more efficiently. So we’re pushing hard toward November, and we are very hopeful.
Autonomous inventory management system provider Corvus Robotics is delivering drone technology for lights-out warehouse environments with the newest version of its Corvus One drone system, announced today.
The update is supported by an $18 million funding round led by S2G Ventures and Spero Adventures.
“Corvus Robotics fits our mission to invest in companies that truly transform the way business is conducted,” Marc Tarpenning, co-founder of Tesla and partner at Spero Ventures, said in a press release Tuesday. “Other than a landing pad, its drone-powered system requires no infrastructure, is quick and easy to deploy, and cost-effective to manage. It literally merges with the existing warehouse environment.”
Corvus Robotics’ drone-based inventory management system uses computer vision and generative AI to understand its environment, flying autonomously in both very narrow aisles—a minimum width of 50 inches—and in very wide aisles. It uses obstacle detection to operate safely in warehouses and features an advanced barcode scanning system that can read any barcode symbology in any orientation placed anywhere on the front of cartons or pallets, according to the company.
The lights-out feature is already in use at customer locations.
“Being able to run inventory checks 24/7 without operator assistance has been a game changer,” Austin Feagins, senior director of solutions at third-party logistics services (3PL) provider Staci Americas, said in the release. “The lights-out capability in the Corvus One system allows our inventory teams to correct discrepancies off-shift and pre-shift before production starts each day, limiting fulfillment delays and production impacts.”
The warm waters of the Gulf of Mexico are brewing up another massive storm this week that is on track to smash into the western coast of Florida by Wednesday morning, bringing a consecutive round of storm surge and damaging winds to the storm-weary state.
Before reaching the U.S., Hurricane Milton will rake the northern coast of Mexico’s Yucatan Peninsula with dangerous weather. But hurricane watches are already in effect for parts of Florida, which could see heavy rainfall, flash and urban flooding, and moderate to major river floods, according to forecasts from the National Oceanic and Atmospheric Administration (NOAA).
As it revs its massive engines with fuel from the historically warm Gulf of Mexico, Hurricane Milton could possibly hit Tampa as a Category 5 storm, according to the FEWSION Project at Northern Arizona University, which tracks supply chains throughout the country.
With that much power, Milton could shut down the port and seriously disrupt the fuel supply into western and central Florida, which could then hinder recovery efforts. That’s because fuel supplies for much of Florida, especially central Florida, arrive from Texas and Louisiana through the Port of Tampa. That means that anyone who depends on generators or fuel for critical functions should plan for an extended period without access to fuel. And recovery crews and logisticians should consider bringing their own fuel when responding to the storm, FEWSION said.
One of those disaster recovery efforts will be led by nonprofit group the American Logistics Aid Network (ALAN), which is already mobilizing its forces for Hurricane Milton, even as it devotes other energy to the Hurricane Helene response. “In an ideal world we’d have plenty of time to focus all of our efforts on Hurricane Helene clean-up and recovery,” Kathy Fulton, ALAN’s Executive Director, said in a release. “But in the real world, major hurricanes don’t always wait for their turn. As a result, we are officially activating for Hurricane Milton.”
In the meantime, many weary residents of the region are thinking of moving to another part of the country instead of getting hit by vicious storms several times a year. Nearly one-third (32%) of U.S. residents aged 18-34 say they’re reconsidering where they want to move in the future after seeing or hearing about the damage caused by Hurricane Helene, according to a survey commissioned by real estate brokerage Redfin.
“Scores of Americans flocked to the Sun Belt during the pandemic because remote work allowed them to take advantage of the region’s relatively low cost of living. Some thought Appalachia was insulated from hurricane risk, not realizing that the area is prone to flooding and that hurricanes can sometimes cause flash flooding far away from the ocean,” Redfin Chief Economist Daryl Fairweather said in a release. “Americans are beginning to realize that nowhere is truly immune to the impacts of climate change, and we’re starting to see that impact where people want to live—even people who haven’t experienced a catastrophic weather event firsthand.”
The report is based on a commissioned survey conducted by Ipsos on Oct. 2-3, fielded to 1,005 U.S. adults. After making landfall in Florida in late September, Hurricane Helene wreaked havoc across Appalachia, becoming the deadliest storm to hit mainland America in almost two decades. In North Carolina, the death toll has surpassed 100 and the city of Asheville has been devastated.
Demand for warehouse and industrial space continued to slump in the third quarter as the overall national industrial vacancy rate edged higher, climbing 30 basis points (bps) to 6.4%, according to the latest research by Cushman & Wakefield.
Although vacancy rose again, it increased by the lowest quarterly gain in vacancy since Q4 2022. The primary cause of the rising empty space was “vacant speculative deliveries,” as developers flooded the market, the report said.
“Industrial vacancy rates remain below the 10-year pre-pandemic average of 7% as new supply slowed and overall absorption remained soft, but positive,” Jason Price, Senior Director, Americas Head of Logistics & Industrial Research, said in a release. “We expect that net absorption will more than double in 2025 as leasing activity accelerates with greater economic certainty.”
Through the first three quarters of 2024, the strongest absorption totals of new real estate were seen in Dallas/Ft. Worth at 18.8 million square feet (msf), Houston at 17 msf, Phoenix at 15.1 msf, and Savannah at 7.4 msf. Conversely, the Los Angeles, New Jersey, Oakland/East Bay, Reno, Seattle, and Portland markets have yielded the highest amounts of negative absorption year to date.
Speculative developments continue to dominate the delivery landscape, accounting for 83% of the YTD new supply total. Expect Q4 deliveries to moderate a bit further nationwide as the construction pipeline has dwindled substantially over the last two years.
The average asking rental rate for industrial space exceeded the $10 per square foot (psf) level for the first time in history at the close of Q3 at $10.08 psf. This marked a 4.3% rise year-over-year as some markets continue to see rents tick higher despite softer fundamentals than the past three years.
“Industrial construction is in the final stages of adjusting to the more normalized levels of demand and absorption and we expect to see markets stabilize in 2025,” said Price. “The pipeline has shrunk to a low (309.3 msf) not seen since year-end 2018 and will continue to dissipate into early next year as construction starts remain muted. We anticipate demand reaccelerating in the second half of next year amid softer delivery totals, coupled with healthy leasing totals.”
E-commerce giant Amazon is in the process of hiring 250,000 people across the U.S. as it heads into the holiday season, saying it will pay all seasonal employees at least $18 per hour and provide full-time hires with health care from the first day on the job.
The positions include full-time, part-time, and seasonal roles across the company’s customer fulfillment and transportation operations in the U.S., according to a blog post by Sandy Gordon, Amazon’s vice president, Global Operations Employee Experience.