In an exclusive interview with DC Velocity, Kathy Fulton of the American Logistics Aid Network talks about the supply chain community’s role in disaster response and why the Covid-19 relief effort has been different from all the rest.
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.
For the past 15 years, the American Logistics Aid Network has been on the front lines of nearly every major catastrophe the world has endured. Better known as ALAN, this consortium of transportation companies, third-party service providers, and warehouse operators helps coordinate the logistics community’s response in times of crisis.
Covid-19 has presented a slightly different agenda from the earthquakes, tornados, and famines that the members of ALAN typically address. But as Executive Director Kathy Fulton explains, it’s just another moment for the heroes of the supply chain to shine.
Q: Can you describe the work of ALAN?
A: ALAN works with businesses, nonprofits, and government to harness logistics knowledge, expertise, and resources to serve communities that have been affected by crisis. We do that in a variety of ways. We work with nonprofit organizations to help them find pro bono transportation and material handling equipment. We work with businesses that want to help but may not otherwise have an outlet to do so.
We also provide businesses with information about what’s happening in the affected area. And we work with government entities to help them better understand how business is operating and what’s happening with freight flows and the transportation sector. Government entities then have a better idea of what their response should be. That is what we do. We’re saving lives through logistics.
Q: ALAN was created in response to infrastructure failures in a time of critical need. Can you describe what took place?
A: Sure. Hurricane Katrina brought some unique logistical challenges when it slammed into the Gulf Coast in 2005. Although relief supplies came pouring in from across the country, there were problems getting them into the survivors’ hands. People were hungry and couldn’t get what they needed because either businesses or government couldn’t get the necessary logistics in place.
So, at the Council of Supply Chain Management Professionals’ (CSCMP) annual conference that year, a group got together and said, “Look, we do this year-round. We move products literally around the world every single day. It seems like we ought to be able to use our knowledge and expertise to help solve these challenges.”
That was really the birth of ALAN, which started out as a consortium of 13 industry and trade associations. Today, that’s grown to somewhere north of 30 organizations that we work with on an ongoing basis.
Q: What part of the supply chain do they cover?
A: Everything. We work with everyone from manufacturers through operations and supply chain management and on to the transportation and broker community.
And there are some nontraditional associations we partner with, like the moving and storage industry and the bottled water association because they have logistics assets and requirements. We work to provide the logistics behind the basic things that are needed in any disaster, like food, water, shelter, and medicine.
Q: So unlike a traditional relief organization, you’re not raising funds to buy supplies and ship them. You’re more of a matchmaker that connects relief organizations in need of services or equipment with companies that can fill those needs?
A: Yes, that’s right. The model doesn’t always make sense to people who take a more traditional view of humanitarian relief work because we’re not directly putting products on trucks. We are helping to put somebody else’s product on a truck or in a warehouse.
So we are not procuring things like supplies or equipment. We are literally finding people who need resources, finding people who have these resources, and making an introduction and letting that relationship go from there.
Q: ALAN usually mobilizes in response to disasters in a localized area. In the case of Covid-19, it’s a worldwide event. How is your role different now?
A: Sometime in January and February, even before the coronavirus outbreak reached the U.S., we realized our role had changed because this is not geographically concentrated. It’s not like a storm in the Southeast United States or a tornado that only affects a couple of communities. This is everybody all at once.
The geographic scale of what we’re doing right now across the nation is new for us. But the types of requests are very similar to what we see in any other event—nourishment, hydration, medical care, and shelter. Those are the things people need. Those don’t go away. In fact, some of those things are amplified.
For example, we work with a lot of food banks. Some of those organizations saw a two, three, four, or five-hundred percent increase in requests. That requires additional transportation to move supplies to the warehouse. We’re also getting requests for support for last-mile deliveries. Again, the scale is increased, the intensity is increased, but they’re still the same types of requests that we’ve been seeing for 15 years.
Q: It is a daunting task with all the needs that are there.
A: Just the pace is interesting. It hasn’t slowed down, honestly. Businesses have figured out how to keep toilet paper and other staples on retail shelves for the most part. But the unemployment numbers are staggering, and that’s causing more strain for our primary partners in the nonprofit community.
Q: Have you noticed any particular problems or resource shortages?
A: Right now, there is plenty of available capacity in the transportation networks. The problem is, it may be too much capacity. We are starting to see smaller fleets parking their trucks. The concern is that if we lose those trucks, will we have enough capacity to respond if there’s another major shock?
Another potential trouble spot is the availability of volunteers within the humanitarian space. A lot of the people who volunteer are at higher risk of contracting Covid-19. Nonprofits are having to look for new and unique ways to run their operations because they don’t have that consistent level of volunteers that they’re accustomed to.
Q: We are recognizing heroes of the supply chain in this issue. Could you give us some examples of companies that have gone above and beyond in this time of crisis?
A: Everyone, once they understood the problem, started to look at how they might be able to leverage their available resources. Whatever the core business, they began asking themselves what they could do to support the relief effort. So that means the chemical community and even distilleries have started manufacturing hand sanitizer, which I think is a really creative solution.
We’re also seeing companies whose transportation business has slowed and are looking for ways to keep their employees busy and who want to contribute. So they’re saying, “Look, we may not have commercial product to move right now, but we will help haul personal protective equipment or food or whatever it may be.”
The cool thing about it is the logistics community is right there at the forefront. Many are being hit hard for a variety of reasons, but they are stepping up and serving.
Q: With so many people out of work, food banks serve a critical need right now. Are you seeing demand for material handling equipment like conveyors, forklifts, and racking to help food banks handle the surge in volume?
A: Yes. We’ve gotten requests for conveyors and supplies as well as boxes and stuff like that to package food in. A lot of those requests are for equipment that’s easy to install, such as gravity-feed conveyor, as well as anything to increase throughput, especially when you have a limited workforce and more volunteers.
Q: I’m sure there are people with supply chains skills and assets out there who want to help. How can they find out what’s needed?
A: They can always visit our website, www.alanaid.org. We’ve posted a list of needs there, and we keep it up to date. Or they can just call us.
The other thing is, if they don’t see a request that fits with what they want to offer, let us know anyway. There is a way to contact us on the website with those kinds of offers. We work to match them with someone with a corresponding need.
Q: If someone doesn’t have services or equipment to offer, can they make a cash donation?
A: Yes, absolutely. We operate on a small budget, and that budget has been strained like everyone else’s because of the Covid-19 response. People who want to support us financially can donate through our website. Those funds help us cover our expenses for technology and all of the other things that allow us to coordinate more effectively.
Q: Although the country is reopening, it will still take some time to get back to normal, especially with all the job losses. What do you expect to be the biggest needs for the next few months?
A: Right now, we’re seeing a lot of requests for transportation service—someone to haul the food from the field to the food bank and out to the people who need it. That is definitely going to continue as we go through the summer. We have enough food and we can process enough food, but there are some kinks in the processing supply chain.
Another challenge is that states have different policies for reopening, and those policies can vary from county to county. It can be difficult for someone operating a supply chain to navigate all of the different policy restrictions. So we’ve created a map that shows all of those policy restrictions by county. You can go to www.alanaid.org/map and request access. We have an incredible team of volunteers who are updating it on an ongoing basis. Every time a policy changes, they are making that update, and you can see it there live and in living color.
Q: Are there any lessons we’ve learned from the first wave that could be applied to future waves should there be any?
A: Yes. One of the really cool things about my job is that I have a front row seat to the crisis response. We convene with all of the associations we partner with once a week and talk about problems that affect all of the members.
The policies and the internal ways in which companies are protecting their employees had to be developed in real time and some are here to stay. I would consider all of that part of the lessons learned and lessons applied. I think we also learned from countries that dealt with this before us and have helped shape the response in the U.S.
The biggest thing is that it’s not just during times of crisis that supply chain folks are heroes. However, it often takes a disaster to make people aware of the critical role of the forklift operator or the truck driver in making sure they have the food and the water and the medical care they need every day. It is really cool to see that they’re being recognized now. They have always been heroes, but now the rest of the world knows it.
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 U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
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.