The Logistics Matters podcast: Glenn Richey of Auburn University on product shortages | Season 2 Episode 47
Most logistics operations have experienced product shortages and supply chain delays lately. Richey explains why these problems are occurring, how long they might last, and what can be done in the short term to alleviate supply chain pressures. Also: The House tackles problems at sea; logistics continues strong upward growth.
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About this week's guest
Glenn Richey is the Harbert eminent scholar in supply chain management and research director in the Center for Supply Chain Innovation at Auburn University’s Harbert College of Business. His role is to help advance supply chain management research and outreach at the college. Richey engages in industry-based research and enjoys building research and student relationships between academia and practice. In addition to his formal education, Richey has an executive certificate in international business from the University of South Carolina.
Prior to entering academia, Richey worked for 10 years in managerial positions across several functional areas, including procurement, sales, retail consulting, finishing/manufacturing, warehousing, and logistics/supply chain operations for two companies: Scott Paper Co. and Genuine Parts Company’s S.P. Richards Division.
Richey has published more than eighty articles in peer-reviewed scholarly journals since 2003. He has won numerous awards for his research, including the Cavusgil Award for the best contribution to international marketing management in Journal of International Marketing and the LaLonde award for the best contribution in supply chain management and logistics in the Journal of Business Logistics. Richey holds a research professorship at the University of Bath (UK) and for eight years at the University of Edinburgh (UK).
Richey has been awarded multiple graduate and undergraduate teaching awards. Notably, he received the Systems and Technology Outstanding Faculty Award for teaching in the Harbert College of Business as well as the University of Alabama’s top teaching award, the National Alumni Association Outstanding Commitment to Teaching Award. He was also noted as the "top performer" in the University of Missouri's EMBA program for multiple years. He has taught across six continents as a visiting professor and associate professor at many universities.
Richey is an associate editor at Journal of Business Logistics and the Journal of Supply Chain Management. He also serves on editorial review boards for several publications. Richey received Emerald Publishing’s Leading Editor Award as co-editor of the International Journal of Physical Distribution & Logistics Management.
He maintains active memberships of the Academy of International Business, the Council of Supply Chain Management Professionals, and the Food Industry University Coalition of the National Grocers Association. Richey's service efforts extend to many state, local, and national organizations as well as governmental entities, including the Federal Emergency Management Agency, the Department of Homeland Security, and the U.S. Chamber of Commerce.
A coalition of freight transport and cargo handling organizations is calling on countries to honor their existing resolutions to report the results of national container inspection programs, and for the International Maritime Organization (IMO) to publish those results.
Those two steps would help improve safety in the carriage of goods by sea, according to the Cargo Integrity Group (CIG), which is a is a partnership of industry associations seeking to raise awareness and greater uptake of the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (2014) – often referred to as CTU Code.
According to the Cargo Integrity Group, member governments of the IMO adopted resolutions more than 20 years ago agreeing to conduct routine inspections of freight containers and the cargoes packed in them. But less than 5% of 167 national administrations covered by the agreement are regularly submitting the results of their inspections to IMO in publicly available form.
The low numbers of reports means that insufficient data is available for IMO or industry to draw reliable conclusions, fundamentally undermining their efforts to improve the safety and sustainability of shipments by sea, CIG said.
Meanwhile, the dangers posed by poorly packed, mis-handled, or mis-declared containerized shipments has been demonstrated again recently in a series of fires and explosions aboard container ships. Whilst the precise circumstances of those incidents remain under investigation, the Cargo Integrity Group says it is concerned that measures already in place to help identify possible weaknesses are not being fully implemented and that opportunities for improving compliance standards are being missed.
Dexory’s robotic platform cruises warehouse aisles while scanning and counting the items stored inside, using a combination of autonomous mobile robots (AMRs), a tall mast equipped with sensors, and artificial intelligence (AI).
Along with the opening of the office, Dexory also announced that tech executive Kristen Shannon has joined the Company’s executive team to become Chief Operating Officer (COO), and will work out of Dexory’s main HQ in the United Kingdom.
“Businesses across the globe are looking at extracting more insights from their warehousing operations and this is where Dexory can rapidly help businesses unlock actionable data insights from the warehouse that help boost efficiencies across the board,” Andrei Danescu, CEO and Co-Founder of Dexory, said in a release. “After entering the US market, we’re excited to open new offices in Nashville and appoint Kristen to accelerate our scale, drive new levels of efficiency and reimagine supply chain operations.”
The deal will create a combination of two labor management system providers, delivering visibility into network performance, labor productivity, and profitability management at every level of a company’s operations, from the warehouse floor to the executive suite, Bellevue, Washington-based Easy Metrics said.
Terms of the deal were not disclosed, but Easy Metrics is backed by Nexa Equity, a San Francisco-based private equity firm. The combined company will serve over 550 facilities and provide its users with advanced strategic insights, such as facility benchmarking, forecasting, and cost-to-serve analysis by customer and process.
And more features are on the way. According to the firms, customers of both Easy Metrics and TZA will soon benefit from accelerated investments in product innovation. New functionalities set to roll out in 2025 and beyond will include advanced tools for managing customer profitability and AI-driven features to enhance operational decision-making, they said.
As retailers seek to cut the climbing costs of handling product returns, many are discovering that U.S. consumers shrink their spending when confronted with tighter returns policies, according to a report from Blue Yonder.
That finding comes from Scottsdale, Arizona-based Blue Yonder’s “2024 Consumer Retail Returns Survey,” a third-party study which collected responses from 1,000+ U.S. consumers in July.
The results show that 91% of those surveyed acknowledge that a lenient returns policy influences their buying decisions. Among them, Gen Z and Millennial purchasing decisions were most impacted, with 3 in 4 consumers stating that tighter returns policies deterred them from making purchases.
Of consumers who are aware of stricter returns policies, 69% state that tighter returns policies are deterring them from making purchases, which is up significantly from 59% in 2023. When asked about the tighter returns policies, 51% of survey respondents felt restrictions on returns are either inconvenient or unfair, versus just 37% saying they were fair and understandable.
“We're seeing that tighter returns policies are starting to deter consumers from making purchases, particularly among the Gen Z and Millennial generations," Tim Robinson, corporate vice president, Returns, Blue Yonder, said in a release. "Retailers have long acknowledged that they needed to tackle returns to reduce costs – the challenge now is to strike a balance between protecting their margins and maintaining a customer-friendly returns experience."
Retails have been rolling out the tighter policies because the returns process is so costly. In fact, many stores are now telling consumers to keep unwanted items to avoid the expensive and labor-intensive processes associated with shipping, sorting, and handling the goods. Almost three out of four consumers surveyed (72%) have been given this direction by a retailer.
Still, consumers say they need the opportunity to return their purchases. Consistent with last year’s survey, 75% of respondents cite the most common reason for returns is incorrect sizing. Other reasons cited by respondents include item damage at 68%, followed by changing one's mind or disliking the item (49%), and receiving the wrong product (47%).
One way retailers can meet that persistent demand is by deploying third-party returns services—such as a drop-off location or mailing service—the Blue Yonder survey showed. When asked what factors would make them use a third-party returns service, 62% of consumers said lower or no shipping fees, 60% cited the convenience of drop-off locations, 47% said faster refund processing, 39% cited assurance of hassle-free returns, and 38% said reliable tracking and confirmation of returned items.
“Where the goal is to mitigate the cost of returns, retailers should be looking for ways to do more than tightening their policies to reduce returns rates,” said Robinson. “Gathering data and automating intelligent decision-making for every return will bring costs down through more efficient transportation and reduced waste without impacting the customer experience. That data is also incredibly valuable to reduce returns rates, helping retailers to see the patterns of which items are returned, by which customer segments, and why; and to act accordingly.”
Based on a survey of 200 TIA members representing the diversity of the industry, 98% of respondents identified truckload as their most vulnerable mode. And those thieves are in search of three most commonly stolen goods—electronics, solar panels, and household goods—due to their high value and ease of resale.
Criminals commit those crimes through a variety of methods. The survey highlighted eight fraud types, including spoofing, unlawful brokerage scams, fictitious pickups, phishing, identity theft, email/virus, inbound phone calls, and text messages.
Stopping those thefts demands extra work from companies in the sector, as nearly 1 in 5 respondents indicated that they spend an entire day each quarter on fraud prevention, while 16% reported spending more than 4 hours a day, and 34% said they dedicate more than 2 hours a day to these efforts. This considerable time investment in monitoring, verifying, and responding to fraudulent activities diverts attention from other essential business operations, affecting overall productivity and increasing operational costs, TIA said.
In response, Alexandria, Virginia-based TIA also examined the critical steps the industry must take to protect itself from fraud schemes. "We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain," Anne Reinke, president & CEO of TIA, said in a release. "When people think of fraud in the supply chain, they only see what is happening to a business, they are not seeing the trickle-down effect to consumers and economy. Fraud is a multimillion-dollar problem that needs to be addressed today."