With continued education, ingenuity, and collaboration, our supply chains may be the key to solving the global plastics crisis, one small step at a time.
Diane Rand is Associate Editor and has several years of magazine editing and production experience. She previously worked as a production editor for Logistics Management and Supply Chain Management Review. She joined the editorial staff in 2015. She is responsible for managing digital, editorial, and production projects for DC Velocity and its sister magazine, Supply Chain Quarterly.
Recently a National Public Radio (NPR) news headline caught my eye: “Recycling plastic is practically impossible—and the problem is getting worse.” Every week, I faithfully rinse plastic containers and aluminum cans, break down cardboard boxes, and toss glass and other products bearing the triangular recycling symbol into my blue recycling bin and roll it to the curb for pickup.
Like many consumers, I assumed that most of that material would be recycled into new products and not end up in a landfill. Yet according to the NPR article, which cites a recent report from Greenpeace, only 5% of the plastic we “recycle” will actually be turned into new things and that percentage is expected to drop as we produce more plastic.
There are several reasons why only 5% of plastic is recycled, reports NPR correspondent Laura Sullivan. It’s cheaper and easier to produce new plastic than to use recycled plastics. Recycled plastics are costly to collect and sort; many plastic materials are made of different types of plastic that cannot be melted down together; and plastic degrades, becoming more toxic, after one or two uses.
The problem with plastics is not unique to the United States; it’s a worldwide problem. It’s a problem, I believe, that supply chains are equipped to address.
Now, I understand supply chains have a lot on their plates right now—constant disruptions, escalating demands from consumers, limited resources, and the pressure to produce financial returns. Thankfully, that has not stopped companies from pursuing global supply chain sustainability (SCS) efforts. A full 77% of the 3,300+ supply chain professionals surveyed for the 2022 State of Supply Chain Sustainabilityreport, produced by the Massachusetts Institute of Technology and Council of Supply Chain Management Professionals, said their companies’ commitment to SCS had remained constant or increased in the past few years. Because supply chains constantly tackle complex issues and challenges, I believe they can make an impact on solving our plastics problem. Here’s what they can do:
The first step is education. Consumers might not realize the extent of the plastics problem—and some don’t “want” to hear about the problem. But avoidance doesn’t work in the long run. We need the industry’s help to get the word out that there is a problem.
Part of that is making your own company’s eco-initiatives transparent. The more transparent you are with your customers about your SCS efforts, the more supportive they’ll likely be. Consumers care that you are trying to solve the problem. That’s particularly true of younger consumers, who value sustainability and actively seek out companies that make it a priority. And they’re willing to pay more for ecofriendly products—just ask my 17-year-old daughter who loves to shop at Allbirds.
The next step is to enlist the help of your supply chain professionals, soliciting their ideas and providing support and encouragement for their efforts. Costs are up in all industries and money is often tight, but don’t let that stop you from challenging your talent to find new and innovative ways to combat the plastics problem. Let them try, and fail, and try again. That’s the road to success.
And lastly, seek out opportunities for collaboration. Make use of industry organizations like the Reverse Logistics Association (RLA). They tackle not just recycling issues but pretty much all of the complications that can arise after the sale of a product.
I encourage you all, as we head into a new year, to keep the plastics problem in your mind as you make decisions. Even a small step can make a huge impact. Happy New Year.
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.