Dr. Terry L. Esper is an associate professor of logistics at the Fisher College of Business of The Ohio State University. He has published several articles on issues associated with retail logistics and supply chain management strategy in leading academic and managerial outlets.
We’ve all seen the news. The rallies and protests triggered by the killing of George Floyd have taken center stage all across this country, as persons of all races and ethnicities gather in city streets to express frustration, hurt, and anger. These are, indeed, tense and “charged” times. Times that call for tough conversations within communities, about how racism, discrimination, biases, and differences in viewpoints shape the ways in which those communities function. This includes the supply chain management (SCM) community.
We have had long-held conversations regarding gender disparities in SCM, but the widescale focus on the George Floyd incident opens a door for us to bring the race conversation to the forefront. There are many things that we could discuss on race, but as a researcher of last-mile logistics and home delivery services, I’d like to raise one concerning issue for us to talk about, ponder, and hopefully act on.
I’ve been in SCM for over 25 years. I started as an intern for a state department of transportation, worked for a major carrier in claims and billing, launched my professional career managing small package transportation for a major corporation, and throughout these experiences, worked my way through college and graduate school, eventually earning a PhD in SCM. For the last 20 years, I’ve been in the SCM academic community, serving on faculty at many of the field’s most well-respected university programs. In this capacity I not only educate emerging SCM talent, but I also spend considerable time studying strategic SCM issues (like last-mile logistics) and working with several major corporations in the process. And, I must admit...In my many years of observing our industry from these various viewpoints and perspectives, never... never have I ever... been as concerned and fearful for the safety of frontline logistics and transportation workers as I am today.
Let me be more specific by adding another of my characteristics to my credentials—I’m a black man. It is part of my identity that triggered this piece, because while I am generally concerned about the safety of all frontline logistics workers, especially in light of COVID-19, I am most and directly concerned about my fellow black men in our SCM community that are charged with the task of providing last-mile delivery services. Let me also be clear in saying that this is not a new concern. It’s been brewing for some time. But a series of recent events, including the situation in Minneapolis, Minnesota, have brought my concern to a boiling point—prompting me to pull up a chair and attempt to start a conversation.
In case you missed this story in the news... a black male delivery driver was recently stopped by members of a neighborhood community demanding answers regarding his reasons for being there. These weren’t simple inquiries, mind you... they were demands, laced with threats of calling law enforcement, apparently out of concern for the safety of their neighborhood. The driver, recording it all via a mobile device, was eventually “allowed to leave”... but only after the delivery recipient intervened, assuring neighbors that the driver had a valid reason for being in their community.
Fast forward a few days, and another such incident occurs. In this case, a pair of FedEx independent contractors, black men in full FedEx uniform, deliver a package to a home. Upon leaving, a resident of the home chased and confronted the men, yelling threats and verbal attacks. After law enforcement intervention, the resident claimed that he had done so out of fear that these men were potential burglary threats. Again, the incident was video captured by one of the drivers.
Fast forward another week, and yet another example surfaces. A black man attempting a DoorDash delivery in an Arizona apartment complex was met by a resident with a drawn firearm. The resident claimed to be afraid of the delivery worker and held him at gunpoint until law enforcement arrived.
Now, some would classify these as isolated incidents, perhaps blown out of proportion by social media retweets and reposts. Some might argue that these are nothing more than simple misunderstandings that were captured and shared, in order to highlight one side of the story. I disagree. Either way, this disturbing pattern allows for a broader conversation, because what I know for sure is that these situations represent the oft unspoken fears and concerns that many Black men shoulder when navigating neighborhoods to make deliveries.
Stories abound where African Americans, particularly men, are reported to law enforcement for what is found to be benign occurrences, simply because their presence and/or disagreement are interpreted as a threat of significant harm. A most recent example involves Amy Cooper, a New York Central Park patron, who, upon being asked to leash her dog by a black man, called law enforcement and falsely claimed that her life was in danger...all while being recorded. This story was shocking to many, but came as no surprise to black men. We know that we are often viewed as a threat. It is an awareness that we carry, and an unfortunate tax of physicality that we pay. Yet, as the recent killings of Ahmaud Arbery and George Floyd have so hurtfully illustrated, we also know that our traipsing about city streets can be interpreted as threatening, and can lead to loss of life, even if law enforcement is involved.
And, that is what I want us... the SCM community... to consider.
I am concerned. The sheer numbers suggest an increased likelihood of situations similar to the delivery examples above. As we have seen, COVID-19 has caused more marketplace consumers to shift to online retail for food and product purchases, which means an increase in home deliveries, and an increased potential for delivery-related confrontations involving African American drivers. Furthermore, many online retailers and restaurants are turning to crowdsourced home-delivery service providers for last mile logistics, which means an increase in home deliveries made by drivers in “ordinary” vehicles wearing “ordinary” clothes. And, in the event that these ordinarily clothed delivery drivers are black men, there is unfortunate likelihood that we will see more reported repeats of the aforementioned delivery incidences. Perhaps with even worse outcomes, especially if not recorded.
SCM community, let’s take this seriously! Yes, the leading story of the day involves law enforcement in Minneapolis, but this emerging pattern of delivery-related issues suggests we also have problems in our SCM community. The sad truth is that, for black male delivery drivers, simply circling a neighborhood to find an address location, or opening a screen door in order to secure a package, comes with a real threat of being accused, accosted, arrested, or dare we even say...assaulted or killed. I ask that we not turn a deaf ear or blind eye to this issue, especially in light of the heightened tensions in our country. I wish I had a list of solutions to provide, but I don’t. I can only ask that we expand our thinking regarding driver safety. In addition to investing in things like PPE, advanced technologies, and updated delivery equipment as ways of enhancing driver safety, let’s also consider implementing processes and standards to combat the safety threats that biases and racial stereotypes pose for frontline delivery drivers—especially those that are African American and men.
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.