The past year has been a hard one for supply chain professionals. This year, we need to make alleviating stress and re-energizing ourselves and our teams a top priority.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
I’ve been to a lot of supply chain conferences over the years. So much so that I know the general rhythm and flow that they take. They always begin the same way: Some hyped-up rock anthem ushers a swaggering speaker onto the stage to tell an inspirational story or paint a grand, sparkling vision of the future of supply chain management. It’s the grown-up equivalent of a pep rally before the big football game, only with business suits and PowerPoint presentations instead of pom-poms and a marching band.
But the opening keynote presentation for the recent Gartner Supply Chain Symposium and Expo felt different. For one thing, Gartner analysts Simon Bailey and Dana Stiffler confronted a hard truth head on: We are all tired.
The pandemic has been a drain and a strain for all of us, but some professions have been hit particularly hard. And while vaccines and the economy and schools opening up have offered glimmers of relief to many, for supply chain professionals work has just gotten tougher. Supply shortages, transportation constraints, and continuing unexpected disruptions mean that stress levels just keep ratcheting up.
“Talent is scarce, fatigued, and questioning their choices,” summarized Stiffler during the keynote presentation.
According to Gartner’s research:
55% of employees have experienced significantly damaged health in the last 12 months, and
85% have experienced higher levels of burnout (with that burnout being particularly acute for frontline managers and supervisors as well as mid-career and senior-level women).
Even before the pandemic, companies were struggling to find people to fill supply chain and logistics jobs. The fact that the people we do have are feeling burned out should be a top concern for companies, especially as we continue to face ever bigger supply chain challenges.
So, what do we do to recover? I believe that authentically acknowledging our fatigue is an important step. Sometimes, there is relief in not sugarcoating things, in recognizing that work is hard right now. It’s a bit of a relief to know that we are not alone in feeling worn out and in questioning whether it’s all worth it.
Also, it might seem impossible in times of disruption and stress when we are scrambling to get goods to market, but we need to let our people rest. We’ve learned a lot about the value of supply chain resiliency over the past 20 months. The same lessons should be extended to our people. In order for us to be resilient, we need to be encouraged to take time off, look after our health, and make connections to others in our community. A healthy and resilient company must spend time looking after the health and resiliency of its employees.
Gartner also argues that a vital way to re-energize the workforce is to provide a sense of purpose for employees. It says that research shows there is a 20% improvement in workers’ health when work is seen as personally relevant to an employee, and a 50% improvement in employee engagement when a company takes on social issues. It urges supply chain leaders to take the time to show employees how their hard work connects to company objectives and how those objectives tie into larger societal aims.
Ultimately, there are no easy answers. But one thing is clear: As companies head into the new year, their eyes need to be not just on profits and alleviating supply chain risks and constraints, but also on how they can support their employees. And how they can do it in a way that goes beyond cheerleading and lip service, so that it feels authentic and substantial.
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.