After two-plus decades managing military logistics, Chris Andrews successfully parlayed the skills he honed in the Army into a management job in the private sector. Now, he's working to help other vets do the same.
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.
Three years ago, Lieutenant Colonel Chris Andrews retired from the Army after serving his country for 26 years. Although he has retired from the military, Andrews has hardly "retired from life," as he puts it. He's now pursuing a second career serving as distribution and logistics manager at the Mesquite, Texas, distribution center run by Benjamin Moore Paints.
Andrews, who spent much of his time in the Army working in military logistics, says the Army prepared him well for his current situation. Among other skills, it taught him leadership, dedication, teamwork, and the nuts and bolts of getting materials from one place to another on time and in good condition.
Now, Andrews is working to help other veterans make a similar leap. At the Warehousing Education and Research Council's annual conference earlier this year, he participated in panel on the "Vets To WERC" program, an initiative aimed at connecting military veterans with employers needing their skills (and of which DC Velocity is a founding partner). As we celebrate Veterans Day in November, DC Velocity Chief Editor David Maloney talked with Andrews about his transition to the civilian work force, the differences between military and private-sector logistics, and his advice for other veterans seeking careers in private industry.
Q: First, can you briefly describe what you did in the military and how that led to your involvement in the supply chain?
A: I first enlisted in the military what seems like eons ago. After three years, I went to college and got my commission as a second lieutenant in the Army cavalry, which was combat arms [troops that participate in direct tactical ground combat]. That was very fulfilling because I was on the best team in the world, and it was something that I could really relate to. At that time, the Army was taking combat arms officers and moving them over into logistics because it was looking for people who understood what the combat arms units needed to fulfill their missions. So I decided to put in for a branch transfer to the Transportation Corps. The transfer was approved, and I went to Fort Eustis, Va., to go through the Transportation Officers Advanced Course.
Q: What did that teach you?
A: I learned a lot about the intricacies of managing transportation and supply chain distribution from a tactical kind of frontline level. You learn how to take assets and work out a plan to be able to support any mission, any disaster, anything that the Army or the military in general does in support of the nation. You could not fail because there were too many lives on the line.
Q: Where else have you been deployed?
A: After I graduated from the officers advanced course, I went to Fort Carson, Colo., to serve as the commander of the 4th Infantry Division's Transportation Company, which was responsible for supporting over 18,000 soldiers in all types of missions. That is really where I cut my teeth—that's where I learned how things worked and that teamwork is absolutely essential to mission success. During Desert Shield and Desert Storm, I was called upon to get all of the assets together to be shipped from Fort Carson to Saudi Arabia. Over 5,000 vehicles had to get moved out in a very short period. That was definitely a standout event in my life because we really accomplished something special. I was so proud of the team that I had.
Q: You also worked with civilians later in your military career. Can you tell us about that?
A: Yes, I had a chance to participate in the Army's "Training With Industry" program back in the '90s, in which selected officers were given a chance to go work with a civilian company for a period of time. In my case, I went to Sea-Land Corp., which was at the time an innovator and a world leader in container shipping. I moved to Long Beach, Calif., to work in the terminals there and learn how you load a ship and how you deal with unions. Then, in December 1994, I went to Dallas to work in the company's administrative offices.
Q: You also have experience with combat deployments.
A: Yes, after the 9/11 terrorist attacks, I served with the security assistant teams that were supporting units in the Middle East. We handled the whole supply chain—I mean, everything from maintenance to transportation, ordnance, and contract management. I learned a lot. We then deployed to Iraq, which was another of those combat zones where you are in a very difficult situation. Combat is one of those things that really test your mettle as a military person. That was a time of great learning, of great satisfaction, and I am very proud of what we were able to accomplish in Iraq. That experience was a kind of validation that everything I had learned up to that point was correct, and it cemented the foundation for everything I did afterward, including here at Benjamin Moore.
Q: What led to your transition out of the military and into the private sector?
A: After my deployment to Afghanistan in 2013, I realized that my time in the military was coming to an end. I think I had done just about everything I wanted to as an officer, and I wanted to retire—but retire from the military, not retire from life. So I submitted my paperwork, retired in July 2014, and moved to Plano, Texas.
Q: How did the opportunity with Benjamin Moore come up?
A: I had been in Plano about two weeks when I got a phone call from a headhunter at Everest Group who had seen my résumé online. He was calling to see if I might be interested in talking with Benjamin Moore about a distribution logistics manager position in Mesquite, Texas.
My interview with Benjamin Moore turned out to be one of those interviews that were absolutely perfect. I had been on the best team in the world—a dynamic team, one that absolutely hit on all cylinders and where everyone just worked so well together. After being on one great team, I wanted to be part of another, and when I interviewed, it became clear that this was another dynamic team. It was evolving. It was pushing the outer limits of doing things logistically that the company had not done before.
Q: Can you give me some examples?
A: Well, the plan was to expand our network—our retailers—and invest in better equipment and technology. There was a clear vision of where we wanted to go, and that was to be the premium paint company in the U.S. To do that, you had to have the best logistics processes in place or be working toward that.
Q: What skills and experiences helped you make the transition from the military to the business world?
A: I think dealing with both military and civilians throughout my time was instrumental. It really allowed me to understand that while the two groups are working toward the same goal, they tend to go about it a little differently. So, you have to allow people to take those gifts that they have and let them flourish. I was able to hone my skills with respect to providing guidance and providing oversight without impeding their progress or hurting their morale.
Q: What differences have you found between military logistics and logistics in the private sector?
A: When you look at it from a logistical standpoint, there is not much difference. I almost look at the retailers that we support as the frontline. They are dealing with the public and selling paint and paint products, so we have to do everything in our power to ensure that they have all those assets, all those products, so that they can pay their bills and pay their employees and support the public.
Q: How did you find the overall transition to civilian life? Was it a difficult adjustment?
A: When I submitted my paperwork to retire in 2013, I had roughly eight months in which to go through the transition that the Army offers. I was mentally prepared for it. Now, having said that, I will tell you that there are certain aspects of the transition that are tough to get used to. One is staying in place when you've been used to moving about every three years. You've got to establish some roots. I am fortunate that I have a job that I am very happy with, but that is not the case with some people who are transitioning from the military.
Q: Can you elaborate on that?
A: There are a lot of vets out there who are still unemployed. So, that transition is ongoing with them in a very personal way. This is where we've got to get employers matched up with vets who want jobs. The thing is, you're not going to find a work force out there that is more committed, more loyal, and that has this same level of real-world expertise. It is ready. They just need a chance to be able to go out and become part of another dynamic team.
Q: You spoke at a panel on the Vets To WERC program (an initiative that seeks to match veterans with supply chain job opportunities) at this year's WERC conference. How did you become a part of that?
A: My name came up in conversations with people at Benjamin Moore. We started talking, and they asked me to be on the panel and talk about my experiences. I just think it is an awesome program.
Q: To close, what advice would you offer a veteran who is seeking a career in the private sector?
A: I would say to the vets that are out there that you need to showcase who you are. Showcase what you can bring to a company. Use all those skills that you learned in the military. Don't ever stop trying. There are people out there that want to hire you.
I would say the same thing to employers. You have a work force out there that is absolutely ready to go. And somewhere, you have got to meet.
I am passionate about this issue because there are so many veterans who are still unemployed despite the tight job market. What baffles me is that there's this group of people from the vets side and a group of employers looking for qualified people. Somehow, they just can't seem to get together. So we have to be able to bridge that gap.
This story first appeared in the September/October issue of Supply Chain Xchange, a journal of thought leadership for the supply chain management profession and a sister publication to AGiLE Business Media & Events’' DC Velocity.
For the trucking industry, operational costs have become the most urgent issue of 2024, even more so than issues around driver shortages and driver retention. That’s because while demand has dropped and rates have plummeted, costs have risen significantly since 2022.
As reported by the American Transportation Research Institute (ATRI), every cost element has increased over the past two years, including diesel prices, insurance premiums, driver rates, and trailer and truck payments. Operating costs increased beyond $2.00 per mile for the first time ever in 2022. This trend continued in 2023, with the total marginal cost of operating a truck rising to $2.27 per mile, marking a new record-high cost. At the same time, the average spot rate for a dry van was $2.02 per mile, meaning that trucking companies would lose $0.25 per mile to haul a dry van load at spot rates.
These high costs have placed a significant burden on the operations of trucking companies, challenging their financial sustainability over the last two years. As a result, 2023 saw approximately 8,000 brokers and 88,000 trucking companies cease operations, including some marquee names, such as Yellow Corp. and Convoy, and decades-long businesses, such as Matheson Trucking and Arnold Transportation Services.
More so than ever before, trucking companies need to get better at efficiently using their assets and reducing operational costs. So, what is a trucking company to do? Technology is the answer! Given the nature of the problem, technology-led innovation will be critical to ensure companies can balance rising costs through efficient operations.
One technology that could be the answer to many of the trucking industry’s issues is the concept of digital twins. A digital twin is a virtual model of a real system and simulates the physical state and behavior of the real system. As the physical system changes state, the digital twin keeps up with the real-world changes and provides predictive and decision-making capabilities built on top of the digital model.
DHL, in a 2023 white paper, suggests that—due to the maturation of technologies such as the internet of things (IoT), cloud computing, artificial intelligence (AI), advanced software engineering paradigms, and virtual reality—digital twins have “come of age” and are now viable across multiple sectors, including transportation. We agree with this assessment and believe that digital twins are essential to radically improving the processes of fleet planning and dispatch.
THE NEED TO AUTOMATE
Outside of attaining procurement efficiencies, trucking companies can achieve lower costs by focusing on critical operational levers such as minimizing deadheads, reducing driver dwell time, and maximizing driver and asset utilization.
However, manual methods of planning and dispatch cannot optimally balance these levers to achieve efficiency and cost control. Even when planners work very hard and owners strive to improve processes, optimizing fleet planning is not a problem humans can solve routinely. Planning is a computationally intensive activity. To achieve fleet-level efficiencies, the planner has to consider all possible truck-to-load combinations in real time and solve for many operational constraints such as drivers’ hours of service, customer windows, and driver home time, to name just a few. These computations become even more complex when you add in the dynamic nature of real-world conditions such as trucks getting stuck in traffic or breaking down or orders getting delayed. This is not a task humans do best! For these sorts of tasks, technology has the upper hand.
When a company creates a digital twin of its trucking network, it has a real-time model that factors in truck locations, drivers’ hours of service, and loads being executed and planned. Planners can then use this digital model to assess possible decisions and select ones that increase asset utilization, improve customer and driver satisfaction, and lower costs.
For example, a digital twin of the network can offer significant insights and analysis on the state of the network, including exceptions such as delayed pickups and deliveries, unassigned loads, and trucks needing assignments. Backed by AI that takes business rules into account, digital twins can allow companies to optimize their fleet performance by finding the most efficient load assignments and dynamically adjusting in real time to changes in traffic patterns and weather, customer delays, truck issues, and so on.
With a digital twin, carriers can optimize the matching of assets, drivers, and freight. Typically, an investment in this innovative technology results in a 20%+ increase in productive miles per truck, while also improving driver pay and significantly decreasing driver churn. Drivers get paid by the miles they run, so when they run more, they are able to make more money, resulting in less need to chase the next job in search of better pay.
ADDITIONAL BENEFITS
Digital twins also combat deadheading, another source of driver dissatisfaction and cost inefficiencies. On average, over-the-road drivers spend 17%–20% of road miles driving empty. Using a digital twin, a company can search across several freight sources to find a load that perfectly matches the deadhead leg without impacting downstream commitments. These additional revenue miles will help drivers to maximize their earnings on the road and carriers to maximize their asset utilization and profitability.
The traditional manual dispatch planning model is becoming increasingly outdated—each planner and fleet manager tasked with overseeing 30 to 40 vehicles. Carriers try to manage this problem by dividing the fleet into manageable chunks, which results in cross-fleet inefficiencies. Such a system isn’t scalable. A digital twin acts as an equalizer for small and mid-sized fleets. It enables carriers to expand by venturing beyond the fixed routes and network they were forced to run out of fear of additional logistical complexity.
A digital twin can also give an organization the transparency and visibility it needs to find and fix inefficiencies. A successful carrier will leverage the technology to learn from the hitches in its operations. While this visibility is beneficial in its own right, it also provides the first step toward a seamless, digitized operation. “Digital revolution” is a buzzword frequently heard at transportation conferences. Yet not too many organizations are dedicated to digitizing their operations past the visibility stage. The end goal should be using decision-support systems to automate key elements of the system, thus freeing up planners from their daily rote tasks to focus on problems that only humans can solve.
Finally incorporating a digital twin can also help trucking companies work toward the broader trend of creating greener supply chains. Because they have lower deadhead and dwell times, trucking companies that have adopted a digital twin can be more attractive to shippers that are looking for more efficient operations that meet their environmental, social, and governance (ESG) goals.
THE FUTURE IS HERE
It is important to note that the benefits described here are not dreams for the future; digital twin technology is already here. In fact, choosing a digital twin can seem daunting because there are already a spectrum of options out there. First and foremost, an organization must ensure that the digital twin it selects aligns with both the goals and the scope of its operation.
Additionally, the ideal digital twin should:
Operate in near real time. A digital twin should be able to refresh as often as the network changes.
Be able to factor in specific customer delivery requirements as well as asset- and operator-specific constraints.
Be computationally efficient and comprehensive as it considers thousands of permutations in milliseconds. The digital twin should be able to reoptimize an entire fleet’s schedule of multi-day routes on the fly.
Before implementing a digital twin, carriers need to make sure that they have robust data management processes in place. Electronic logging devices (ELDs), customers’ tenders, billing, shipments, and so on are already inundating carriers with a glut of data. However, the manual nature of operations in many carriers leads to poor data quality. Carriers will need to invest in data management approaches to improve data quality to support the generation and use of high-fidelity digital twins. Otherwise, the digital twin will not be representative of reality and companies will run into an issue of “garbage in, garbage out.”
REINVENTION AND TRANSFORMATION
While data management is critical, change management through the ranks of dispatch operations is often a harder task. In fact, the largest roadblock carriers face when undergoing a digital transformation is the lack of willingness to change, not the technology itself. Many carriers cling to outmoded planning methods. Planners, used to operating based on well-worn business rules and tribal knowledge, could be wary of the technology and resistant to change. They may need to be assured that, while it is true that every trucking network is uniquely complex, digital twins can be set up to model the intricacies of their specific dispatch operations and drive value to the network. A significant amount of time and resources will need to be expended on change management. Otherwise even though trucking companies may invest in cutting-edge technology, they won't be able to fully capitalize on the added value it can provide.
As the truckload industry works through the current freight cycle, it is important to realize that change is inevitable. Carriers will need to reinvent their operations and invest in technologies to ride through the busts and booms of future freight cycles. Recent global events point to the many ways that wrenches can be thrown into global transportation networks, and the fact that such volatility is here to stay. Digital twins can provide companies with the visibility to navigate such changes. But above all, an operation that uses the digital twin to drive decisions can make customers and drivers happy, and help the carriers keep their heads above water during times such as now.
Regular online readers of DC Velocity and Supply Chain Xchange have probably noticed something new during the past few weeks. Our team has been working for months to produce shiny new websites that allow you to find the supply chain news and stories you need more easily.
It is always good for a media brand to undergo a refresh every once in a while. We certainly are not alone in retooling our websites; most of you likely go through that rather complex process every few years. But this was more than just your average refresh. We did it to take advantage of the most recent developments in artificial intelligence (AI).
Most of the AI work will take place behind the scenes. We will not, for instance, use AI to generate our stories. Those will still be written by our award-winning editorial team (I realize I’m biased, but I believe them to be the best in the business). Instead, we will be applying AI to things like graphics, search functions, and prioritizing relevant stories to make it easier for you to find the information you need along with related content.
We have also redesigned the websites’ layouts to make it quick and easy to find articles on specific topics. For example, content on DC Velocity’s new site is divided into five categories: material handling, robotics, transportation, technology, and supply chain services. We also offer a robust video section, including case histories, webcasts, and executive interviews, plus our weekly podcasts.
Over on the Supply Chain Xchange site, we have organized articles into categories that align with the traditional five phases of supply chain management: plan, procure, produce, move, and store. Plus, we added a “tech” category just to round it off. You can also find links to our videos, newsletters, podcasts, webcasts, blogs, and much more on the site.
Our mobile-app users will also notice some enhancements. An increasing number of you are receiving your daily supply chain news on your phones and tablets, so we have revamped our sites for optimal performance on those devices. For instance, you’ll find that related stories will appear right after the article you’re reading in case you want to delve further into the topic.
However you view us, you will find snappier headlines, more graphics and illustrations, and sites that are easier to navigate.
I would personally like to thank our management, IT department, and editors for their work in making this transition a reality. In our more than 20 years as a media company, this is our largest expansion into digital yet.
We hope you enjoy the experience.
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In this chart, the red and green bars represent Trucking Conditions Index for 2024. The blue line represents the Trucking Conditions Index for 2023. The index shows that while business conditions for trucking companies improved in August of 2024 versus July of 2024, they are still overall negative.
FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July. The Bloomington, Indiana-based firm forecasts that its TCI readings will remain mostly negative-to-neutral through the beginning of 2025.
“Trucking is en route to more favorable conditions next year, but the road remains bumpy as both freight volume and capacity utilization are still soft, keeping rates weak. Our forecasts continue to show the truck freight market starting to favor carriers modestly before the second quarter of next year,” Avery Vise, FTR’s vice president of trucking, said in a release.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index, a positive score represents good, optimistic conditions, and a negative score shows the opposite.
A coalition of truckers is applauding the latest round of $30 million in federal funding to address what they call a “national truck parking crisis,” created when drivers face an imperative to pull over and stop when they cap out their hours of service, yet can seldom find a safe spot for their vehicle.
According to the White House, a total of 44 projects were selected in this round of funding, including projects that improve safety, mobility, and economic competitiveness, constructing major bridges, expanding port capacity, and redesigning interchanges. The money is the latest in a series of large infrastructure investments that have included nearly $12.8 billion in funding through the INFRA and Mega programs for 140 projects across 42 states, Washington D.C., and Puerto Rico. The money funds: 35 bridge projects, 18 port projects, 20 rail projects, and 85 highway improvement projects.
In a statement, the Owner-Operator Independent Drivers Association (OOIDA) said the federal funds would make a big difference in driver safety and transportation networks.
"Lack of safe truck parking has been a top concern of truckers for decades and as a truck driver, I can tell you firsthand that when truckers don’t have a safe place to park, we are put in a no-win situation. We must either continue to drive while fatigued or out of legal driving time, or park in an undesignated and unsafe location like the side of the road or abandoned lot,” OOIDA President Todd Spencer said in a release. “It forces truck drivers to make a choice between safety and following federal Hours-of-Service rules. OOIDA and the 150,000 small business truckers we represent thank Secretary Buttigieg and the Department for their increased focus on resolving an issue that has plagued our industry for decades.”
“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.