Victoria Kickham, an editor at large for Supply Chain Quarterly, started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for Supply Chain Quarterly's sister publication, DC Velocity.
Last February, most of us were going about our lives as usual—commuting to the office, stopping at the grocery store, making plans to meet friends at that favorite neighborhood restaurant. Little did we realize those actions would become either unnecessary or taboo in the months ahead due to lockdowns and capacity limitations caused by the pandemic.
Against this backdrop, logistics has emerged as an essential part of our daily lives. This may be more obvious to those of us who work in the industry or cover it for a living, but if you think about it, logistics has come home in ways most of us couldn’t have imagined 12 months ago. Loading docks (the front stairs), shipping and receiving areas (the dining room table), and inventory stores (an overstocked pantry, perhaps, or a set of basement shelves brimming with paper goods) are as ubiquitous in residential neighborhoods today as driveways and front lawns. Many of the pandemic-induced behavior changes will become permanent, and they have put the supply chain “on the map” in a couple of important ways.
First, the product shortages that marked the early days of the pandemic shined a light on the industry. It’s never been easier for me to explain to friends and family what I write about for a living, for example. This will likely draw more people to the profession and elevate the supply chain’s status in corporations around the world. Target Executive Vice President and Chief Supply Chain Officer Arthur Valdez Jr. said as much during the Council of Supply Chain Management Professionals’ (CSCMP) Edge conference, held virtually in late September. In an interview with CSCMP CEO Rick Blasgen, Valdez predicted a greater need for supply chain skills in retail organizations post-pandemic.
“Many more CEOs will come from supply chain [and] logistics backgrounds,” Valdez explained, emphasizing the discipline’s role in retailers’ success during the age of e-commerce.
Second, consumers have become partners in navigating one of the industry’s biggest challenges: last-mile delivery. 2020’s hyper-accelerated e-commerce activity created overwhelming demand for home delivery that was exacerbated during the holiday shopping season. As a result, home-based “logisticians” were encouraged to take the last mile into their own hands by opting for curbside and in-store pickup. No doubt most of them used a blend of those strategies to get through peak season—I know I did—and, as a result, think they understand the supply chain a little bit better.
In perhaps the most pointed example of how all this has hit home, a friend described an ultra-personal last-mile delivery she experienced just before Christmas. She’d been waiting for an overdue delivery from a major retailer, expected to arrive via one of the big three carriers. She was surprised one afternoon when a middle-aged woman in an SUV pulled into her driveway and hand delivered the much-awaited package. No, the woman wasn’t a gig-economy delivery driver. As it turned out, she, too, was awaiting an overdue delivery from that retailer and had received my friend’s package in error; it had been delivered to her address in a neighboring town. Rather than send it back via the carrier and incur more delays, the woman decided to put my friend’s address in her GPS and just “pop over and deliver it” herself. My friend was grateful; the package was a Christmas gift for her mother-in-law.
Before the woman left, she gave my friend her address and asked if she’d return the favor should her missing package mistakenly arrive on my friend’s doorstep. My friend agreed, of course. If there’s anything we home logisticians understand, it’s the importance of on-time delivery.
A year ago, my friend might have chalked this experience up to holiday-season goodwill and not given it another thought. But things are different now. Should a wrong delivery arrive, my friend says she’s prepared to go the last mile, GPS at the ready. After the year we’ve had, and with more than a fair bit of logistics experience under our belts, I’d like to think that most of us would do the same.
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.