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Chris Wolfe is CEO of PowerFleet. He has more than 20 years of experience in building, implementing and selling technology solutions. During his 12-year tenure with Qualcomm Inc., including serving as division president of Qualcomm Wireless Business Solutions, he was instrumental in developing and executing a series of strategic corporate initiatives that transformed its products and operations, and drove double-digit revenue growth over a four-year period.
Prior to his career at Qualcomm, Chris held senior technology management positions at Roadway and Leaseway Transportation (now Penske Logistics).
David Maloney, Editorial Director, DC Velocity :
Has the Covid-19 pandemic set new sustainability standards? What role does risk mitigation play in an economic recovery? And what steps are being made to prepare our supply chains for the distribution of a coronavirus vaccine?
Pull up a chair and join us as the editors of DC Velocity discuss these stories, as well as news and supply chain trends, on this week's Logistics Matters podcast. Hi, I'm Dave Maloney. I'm the editorial director at DC Velocity. Welcome.
Logistics Matters is sponsored by DCV-TV. Five channels of streaming video are yours for the viewing on DCV-TV. Major improvements have recently been made to the DCV-TV platform to enhance the viewing experience, provide greater search capabilities, and to expand the capacity of the video library well beyond the 3,000-plus videos already in the archive. Be sure to check it all out at DCVTV.com.
As usual, our senior editors Ben Ames and Victoria Kickham will be along to provide their insight into the top stories of this week. But to begin: Has the Covid-19 pandemic sparked new sustainability standards? To answer that question, here is Ben and today's guest. Ben.
Ben Ames, Senior News Editor, DC Velocity :
Thanks, Dave. Here today joining us we have Chris Wolfe, who's the CEO of PowerFleet. Chris has had a 30-year career in transportation logistics. He ran the Omnitrax division at Qualcomm and he's also held senior technology management positions at Roadway and Leaseway Transportation—now Penske Logistics.
Thanks for being here today, Chris.
Chris Wolfe, CEO, PowerFleet :
Hey, thanks for having me, Ben.
Ben Ames, Senior News Editor, DC Velocity :
We have some interesting material to talk about today. As the Covid-19 pandemic has highlighted many vulnerabilities in global supply chains, we've seen the rise of some innovative technologies to ensure adaptability and to minimize disruption. Can you share some examples of what you've seen?
Chris Wolfe, CEO, PowerFleet :
One great example is what we did with the French Red Cross: Taking medical supplies for Covid and Ebola—basically PPE, as well as ventilators and medicines—into the Congo from France. And it is [a] 10,000 kilometer journey. Made sure that everything arrived on time in the right condition. So again, it's a phenomenally applicable story for what we're talking about.
Ben Ames, Senior News Editor, DC Velocity :
It absolutely is. And as you say, it's an interesting point, but for Covid and Ebola. So, these pandemics, it's easy to lose track of in the current crisis, but it's something that we've been dealing with for some years before the coronavirus pandemic itself came around, so... Some of those changes that we've been talking about have already forced more efficient methods of transportation—monitoring and compliance. But will they still be used in the post-Covid world, once vaccinations and treatments have allowed us to return to some form of new normal?
Chris Wolfe, CEO, PowerFleet :
Absolutely, and what's enabling that, too, is the the price curve, and the capability of the networks, right? I mean, everyone's heard of the 3G to the 5G migration that's going to happen that's going to allow sensor data and battery technology to last longer and be more cost effective. So again, what you'd normally would do for a very high-value pharmaceutical shipment, or for a medical supply shipment or blood supplies, or whatever, now can actually work its way through the supply chain for other essential goods that have to be there on time. I mean, we actually saw that in the Covid pandemic early on, when you couldn't even get toilet paper, right? It's like, we needed to have that visibility so that we can react quicker throughout the whole supply chain.
Ben Ames, Senior News Editor, DC Velocity :
Yeah, for sure. And visibility, for any listeners to this podcast, is a theme that we've been talking about for years in the logistics sector, so that improved capability would allow companies to fix a lot of their current pain points, I know.
Chris Wolfe, CEO, PowerFleet :
Exactly.
Ben Ames, Senior News Editor, DC Velocity :
So, looking at the evolution of some of these things, from logistics practitioners' point of view, is there a cost to applying some of these new methods? And how companies pay for them?
Chris Wolfe, CEO, PowerFleet :
Great question. I mean, historically, you know, most people were focused on the $700 billion logistics costs, like in the United States, that's what it costs to move the freight. But the freight itself is $15, $16 trillion of value, right? So, if you can actually track the freight itself and the freight can be self-aware, I mean, you know, just think of the power that gives the whole supply chain. Instead of just tracking the trailer, tracking refrigerated unit, tracking the truck, tracking the chassis or the container. You know, now you can actually go down and, like I mentioned before, to the pallet level, to the container level, to the returnable. And I think all that is within reach now, versus technologies that were in play over the last 20, 30 years.
And that will actually not only enhance visibility, but velocity, right? So now, with ELD and HOS [hours-of-service] mandate, you know, the choke point is, you know, the driver can only drive so many hours. So the choke point is actually now, you know, at the port, at the railhead, at the facility, and technologies can actually help that whole supply chain be more flexible and more visible.
Ben Ames, Senior News Editor, DC Velocity :
Mm hmm. Gotcha. Yeah, there're plenty of improvements to be made in that, for sure. So, as well as enabling more adaptable logistics operations, as you're describing, will the changes also impact those business users' supply chain carbon footprints? Since I know many companies are trying to make their supply chains more carbon neutral in the near future?
Chris Wolfe, CEO, PowerFleet :
Yeah, and you've seen a lot of the, you know, a lot of fleets are actually moving more to electric or hybrid technologies. And the vehicles themselves are technologies.
And many other players who do mobility solutions actually help that on a grand scale, because what we help companies be is more efficient. So eco-driving, driver behavior, making sure you're not using too many assets. You know, do you really need 3-to-1 tractor-to-trailer ratio—or trailer-to-tractor ratio? And in private fleets, it's even bigger than that. Is your refrigerated unit running too long? You know, that's just wasting fuel. You know, there's technologies today that we, you know, that we have that can enable customers to not have as many trailers. Well, if you don't need as many trailers, that means you didn't have to manufacture them, so your carbon footprint goes down. So, again, our whole goal is to help companies run more efficiently, and at the same time run safely and securely.
Ben Ames, Senior News Editor, DC Velocity :
It's really two sides of the same coin, isn't it?
Chris Wolfe, CEO, PowerFleet :
Yes. And by the way, one other—you mentioned Covid and the impacts of simple things that have been done, like access control of the vehicle. You know, if you're doing key management manually right now—a lot of people still do that, right? Keys for the yard meal, keys for the forklift—you know, that's a lot of human-human interchange of keys. You don't need to do that. I mean, you know, basically, we have wireless ignition systems and card-key access. If you look at simple things like checklists, which are mandated, you know, OSHA-mandated requirements, if you're doing those manually still, and handing those into somebody administered in office, I mean, again, those touch points that you just don't need to have, you know, that if you eliminate all those touch points, you know, you kind of enforce social distancing in the facility.
Ben Ames, Senior News Editor, DC Velocity :
Gotcha, gotcha. The follow-on effects are critical. So we've talked about some of the effects of this evolution on on PPE deliveries, on Covid transmission, on carbon emissions. Can some of these changes also help companies deal with different types of disruptions? As we know, there's always something new around the corner.
Chris Wolfe, CEO, PowerFleet :
I think one thing we all learned, I mean, if you step back and take a holistic perspective of supply chain—and this is where, you know, the government could really help. I mean, to be honest with you, it's, where's FEMA, you know, in the Covid response? We need a centralized—whether it's the government or the industry steps up—it's that centralized visibility, right? Of, you know, like ventilators. That's a great example, PPE. You know, some states had them, some states didn't. You know, who's actually doing the true logistics oversight and moving much-needed goods and essentials where they need to go? And I think companies in our supply chain have that capability. They have that expertise. But, you know, they need to be brought together and orchestrated for the greater good at times, like a Covid pandemic, a hurricane, as an example.
Ben Ames, Senior News Editor, DC Velocity :
Really interesting conversation, Chris, I appreciate your joining us today.
Chris Wolfe, CEO, PowerFleet :
Hey, thanks a lot, Ben. Take care and be safe.
Ben Ames, Senior News Editor, DC Velocity :
To yourself as well. Thank you that. We've had Chris Wolfe with us here today. He's the CEO of PowerFleet. And back to you, Dave.
David Maloney, Editorial Director, DC Velocity :
Thank you, Chris and Ben.
Now let's turn to some other supply chain news from the week. Victoria, you reported this week about how many executives are looking at risk-mitigation strategies and how they may help usher in a sustained economic recovery. Can you share more?
Victoria Kickham, Senior Editor, DC Velocity :
Yes, absolutely. So, companies are, up and down the supply chain, are refocusing on risk-mitigation strategies in light of Covid-19. There's been a lot of research on this topic since the pandemic hit. But recently, I should say this week, we looked at a study from Infosys Consulting that said that most supply chain executives experienced a 25% or greater supply chain impact from the pandemic. The study also found that many of those organizations were, as they termed, [it] overconfident in their ability to manage the recent disruptions. About three-quarters of those surveyed said they felt at least somewhat prepared for disruption pre-Covid-19, but only 39% said they felt that way during the pandemic. Now, I should say that Infosys interviewed 80 supply chain executives from eight countries around the world for the report. And as a result, what they're seeing—and many others, as well—is a renewed focus on, as you said at the beginning, Dave, risk mitigation and sort of business continuity planning. Specifically interesting in this study, they said that, you know, respondents were looking at managing certain supply chain processes, in particular moving forward, and the top three were demand forecasting. readiness and continuity planning, and inventory management.
I should say on the plus side, despite all these challenges, most companies are optimistic that their organizations will recover from all these pandemic-related disruptions in a matter of months, not years. Most respondents said they expect their businesses to recover in nine months or less, and more than 60% said they expect that recovery in less than six months. So, despite the challenges ahead and the need to really kind of look at these issues, most companies are optimistic they can sort of overcome it and improve.
David Maloney, Editorial Director, DC Velocity :
So is there evidence that companies are taking risk more seriously? Given the unprecedented scale of the pandemic, what steps can companies take to better manage their disruptions?
Victoria Kickham, Senior Editor, DC Velocity :
Yeah, that's an important point. So, you know, the point about overconfidence, it's really understandable. This pandemic is not like anything anybody expected. So to think that you can kind of manage, you have a good plan in place before it happens, and then not feel that way now is certainly understandable.
But yes, I think there is, there does seem to be a seriousness attached to this renewed focus on business continuity. I've been looking into this subject for another story that's upcoming. and many supply chain risk-management firms—consultants, tech providers, those kinds of companies—that I've talked to say they're seeing an increased interest in their service and what they are calling sort of a mindset shift when it comes to risk. One person I talked to explained that, you know, a lot of companies are really viewing business continuity as not optional anymore. It's a vital part of their business.
In particular, they say new and existing clients are looking for tools and services, mostly technology tools, that can really help them improve communication with supply chain partners, and implement different strategies. One is, you know, supply chain mapping, in which you can create sort of a detailed plan or reference about your suppliers' locations, and their suppliers' locations, that kind of thing. They also say they're seeing growing interest in tools that can help them evaluate issues like their inventory strategy, you know, finding ways to better manage—I should say, better position inventory to respond to fast-changing customer demands, and these kinds of situations. And that's leading to things like nearshoring, onshoring. Just sort of, you know, relocating your inventory. So those kinds of things are popping up. And yeah, the people I talked to say there is, this does seem to be a serious focus on this.
David Maloney, Editorial Director, DC Velocity :
Well, let's hope so. I think we've all learned that resiliency and mitigating that kind of risk have been keys to business survival this past year. Thank you, Victoria.
Victoria Kickham, Senior Editor, DC Velocity :
You're welcome.
David Maloney, Editorial Director, DC Velocity :
Turning now to Ben: We know that several large trials are underway to find an effective vaccine to fight Covid-19, and that's one of the things we've written about in DC Velocity, is the enormous challenge there will be in distributing them once ready. You wrote more about that this week, on some of the initial plans. Can you tell us more?
Ben Ames, Senior News Editor, DC Velocity :
Absolutely, Dave. In fact, that ties in very closely to what Victoria was just talking about, with some of the Covid-related business risks and recoveries from pandemic-related disruptions.
What some of the logistics performers in the area are now warning about is that, while no one knows when, exactly, a vaccine might be available, the challenge of distributing it around the world might be one of the biggest logistics operations that anybody's ever done—the biggest in history, some are saying. The International Air Transport Association, or IATA, this week warned of what they call potentially severe capacity constraints in transporting vaccines by air. In fact, IATA calculated that providing a single vaccine dose for the world's 7.8 billion people—that's about how many people are on the globe now—would fill 8,000 747 cargo planes. And that comes at a time when the air cargo sector, we've seen, has historically low freight capacity. And that's because of coronavirus travel restrictions—and many travelers are wary of boarding planes—and, of course, as much as 60% of air freight flies in the belly compartment of those passenger jets. So, while it's true that, you know, developed economies that have local virus manufacturing can offset some of those flights through land transportation, the scope of the challenge is going to be the same, and certainly getting a virus [vaccine] to all corners of the world is going to involve a lot of reliance on air freight.
David Maloney, Editorial Director, DC Velocity :
Yeah, especially since that air freight has to be temperature controlled, and so the shorter the duration, the less you have to control that length of time that it has to be...
Ben Ames, Senior News Editor, DC Velocity :
Exactly right
David Maloney, Editorial Director, DC Velocity :
in a temperature zone. Are you seeing any companies in the logistics [sector] preparing to meet those challenges?
Ben Ames, Senior News Editor, DC Velocity :
We are, and your point about the temperature control is exactly on for that. We saw DHL Global Forwarding, which is an air- and ocean-freight specialist, announced a series of technology enhancements just yesterday, to its life sciences and healthcare line. It rolled out a lane risk-assessment software tool to gather more data from sensors and IoT devices. It digitalized some of its operations, like its standard operating procedures for biopharmaceutical shipments, and it has a new interface for a tracking portal for temperature-controlled shipments, as you pointed out.
Another example is that Kuehne+Nagle, the global freight forwarding provider, said it had just opened airside pharma and health-care hubs in Brussels, Belgium, and Johannesburg, South Africa. And that's important because an airside hub can support direct tarmac access to a cargo plane, which is critical for handling those temperature-sensitive products, which have very low or no stability outside of those ranges. So you can really whisk them from temperature-controlled warehousing right into the airplane or vice versa.
David Maloney, Editorial Director, DC Velocity :
Hopefully those preparations and more will continue so that when the vaccines are ready for the world, our logistics networks are ready to also respond. Thank you, Ben.
Ben Ames, Senior News Editor, DC Velocity :
Of course.
David Maloney, Editorial Director, DC Velocity :
We encourage listeners to go to DCVelocity.com for more on these and other supply chain stories. Go there to check it all out. Thanks, Ben and Victoria, for sharing Highlights of the news this week.
Ben Ames, Senior News Editor, DC Velocity :
Thank you, Dave. always interesting.
Victoria Kickham, Senior Editor, DC Velocity :
You're welcome.
David Maloney, Editorial Director, DC Velocity :
And again, our thanks to Chris Wolfe of PowerFleet for being with us today. We encourage your feedback on this topic and our other stories. You can email us at podcast@dcvelocity.com. And a reminder the Logistics Matters is sponsored by DCV-TV. Be sure to check out the latest videos on DCVTV.com, the largest and best source of videos for the supply chain industry, including DCV-TV Channel 4. This viewer-contributed channel includes hundreds of videos that DC Velocity readers and industry suppliers have uploaded directly to the channel. Stop by often to see the latest uploads. Again, go to DCVTV.com to view them.
We encourage you to subscribe to Logistics Matters on Apple, Google, Spotify, Stitcher, or wherever you get your podcasts. Just search for "logistics matters" to find us. Our new episodes are uploaded each Friday. We'll be back again next week with another edition of Logistics Matters, when we'll talk to Gartner about how close internet of things technologies are to making an impact on logistics. Be sure to join us. Until then, please stay safe and have a great week.
