In Person interview: Ed Bowersox of CJ Logistics America
In our continuing series of discussions with top supply-chain company executives, Ed Bowersox of CJ Logistics America discusses peak season, the benefits of lean, and the need for resiliency.
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.
Ed Bowersox is CEO of CJ Logistics America, a third-party logistics service provider (3PL) and supply chain consultant. Formerly known as DSC Logistics, the company was acquired by South Korean giant CJ Logistics Corp. in 2018 and is now being integrated into the CJ Logistics family. In his capacity as CEO, Bowersox leads the company’s strategy and has executive oversight of its development and management.
Bowersox joined DSC as senior vice president, customer strategy in 2015. Prior to that, he worked for Kimberly-Clark, where he led global supply chain transformation initiatives and oversaw operating and manufacturing facilities. Bowersox holds a bachelor’s degree in packaging engineering and logistics from Michigan State University.
Q: How do you view the current state of the logistics market?
A: The Covid-19 pandemic has certainly underscored the criticality of logistics and supply chain. Our organization has long emphasized the importance of being out in front of dynamic change; we are focused on providing thought leadership and insights to inform strategies. We’re rethinking global supply chains, redefining supply chains. E-commerce is the most rapidly growing 3PL segment, and the industry is experiencing a very intense, constrained fourth quarter. Retailers and logistics providers are playing critical roles in keeping the supply chain moving and evolving through unprecedented times.
Q: Your company is going through a rebranding, moving to CJ Logistics. What are you hoping this new identity will provide?
A: We are coming together as one company, with all the brands aligned with our vision for a connected customer experience, integrated global solutions, and accelerated innovation. Our focus is on customer value creation and continuous improvement. Now, as CJ Logistics, we are able to provide expanded capabilities that truly span the supply chain from end to end and to integrate those services across the globe. Our ability to optimize sustainability, efficiency, and visibility are greatly increased. Further, we see this as a huge step in our continuing efforts to develop world-class talent, with an increased ability to provide robust global career-development opportunities for existing and new team members. Becoming one with “CJ Logistics, The SCM Innovator,” is also symbolic of our commitment to continue to invest in technology and information systems that translate into data-driven strategies. It’s a very exciting time.
Q: CJ Logistics offers a full range of supply chain services, including transportation, warehousing, logistics, and consulting. Are there advantages to providing customers with that full-service approach?
A: Yes, when you approach the supply chain holistically, you can be much more effective in optimizing the total system. When you only manage a myopic portion of the supply chain, there is always a risk of sub-optimization. In our customer engagements, even when we are only playing a singular role in a customer’s supply chain, we step back and attempt to model and consider as much of their total picture as we can, evaluating the impacts of our solution up and down the chain. Every solution has our customers’ broader goals and end-customer in mind. Whether customers are hoping to identify quick wins or design for total network optimization, we keep the big picture in sight and assist customers in mitigating risk and making key business decisions.
Q: Supply chain capacity is very tight right now, especially in the midst of this holiday season. What effect has that had on operations?
A: On the warehouse side, attracting and retaining talent is more critical than ever. Our employees have shown tremendous dedication as we work to keep the supply chain moving, providing some of the food, medical, and consumer supplies that have been most critical throughout the pandemic. In view of the increased activity, we are focused on providing flexibility, recognition, and incentives to help sustain and retain our team members through this challenging period.
Regarding transportation, capacity and rising rates are a critical concern, and constraints are increasing across all modes. In this challenging market, our customers are starting to evaluate the feasibility of dedicated asset solutions and are receptive to more aggressive collaborative shipping consolidation programs to optimize existing capacity.
Q: You have been a proponent of lean. What are the main benefits that lean provides to operations?
A: Lean principles serve to help drive operational efficiency and accuracy, which in turn transforms business processes to reduce total cost and improve service. Our continuous improvement (CI) philosophy is much broader than lean, however. Our CI approach emphasizes accountability and empowerment to drive results. Our framework drives continuous improvement at the local operations level, at the customer network level, and across our North American enterprise. We apply our industry expertise to help our customers reach levels of performance they could not reach alone, leveraging innovative technology and business intelligence (BI) tools to enhance performance and calibrate results. We challenge ourselves to be out in front, adapting to change and advancing industry thinking and practices.
Q: What do you think is the most important thing that companies should focus on now in their supply chains?
A: Companies must focus on strategies for building robust, resilient supply chain networks that can respond quickly to dynamic change. It is time to accelerate plans and strategies focused on increasing visibility, innovation, and automation, and a high-performing, collaborative supply chain partnership can serve as a critical enabler to success in these areas.
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.
The autonomous forklift vendor Cyngn has raised $33 million in funding to accelerate its growth and proliferate sales of its industrial autonomous vehicles, the Menlo Park, California-based firm said today.
As a publicly traded company, Cyngn raised the money by selling company shares through the financial firm Aegis Capital in three rounds occurring in December. According to forms filed with the U.S. Securities and Exchange Commission (SEC), the move also required moves to reduce corporate spending for three months, including layoffs that reduced staff from approximately 80 people to approximately 60 people, temporarily suspended certain non-essential operations, and reduced or eliminated all discretionary expenses.
In the company’s view, autonomous vehicles are playing a critical role in transforming industrial operations by enhancing productivity and safety.
“This capital infusion strengthens our ability to fund operations, drive commercialization, and continue investing in groundbreaking autonomous vehicle technologies,” Lior Tal, chairman and CEO of Cyngn, said in a release. “With increasing demand for automation solutions, especially in the automotive, heavy machinery and logistics industries, this funding allows us to build on recent momentum, including our upcoming autonomous forklift launch and other strategic advancements.”
Editor's note:This article was revised on January 14 to include information from Cyngn on its finances.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”