Lessons from the ultimate last-mile delivery expert: interview with Dasher the reindeer
Like the course of true love, holiday peak season never runs smooth—but 2024 took the challenges to a whole new level. To find out how one major player navigated the obstacles, we invoked the magic of GenAI to get the inside story.
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.
2024 has been quite a year. In addition to the usual challenges, supply chain leaders have had to contend with two major wars, several devastating hurricanes and storms, dock strikes, a rail strike, a freight recession, an uneven economy, and an election cycle unlike any other. That’s a lot packed into one year.
We can all use a chance to catch our breath. As the holidays approach, we at DC Velocity thought it would be fun to take a more whimsical approach to this month’s ThoughtLeader Q&A and interview Dasher the reindeer.
Dasher made his debut as one of eight named reindeer in Clement C. Moore’s classic 1823 poem, “A Visit from St. Nicholas.” As we all know from the poem, Dasher and his fellow magical reindeer—Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen—provide crucial transportation support for the Jolly Old Elf’s Christmas Eve mission, pulling the sleigh full of toys for delivery to children around the world. What many people might not realize is that Dasher is also a supply chain expert. His duties require him to keep up with the latest trends in distribution and logistics to assure that the gifts all get delivered on time, to the right address, and damage-free.
So in the spirit of the holidays, we used a bit of magic ourselves in the form of generative artificial intelligence (GenAI) to conduct a personal interview with this very important reindeer. You may ask why we didn’t choose Rudolph. Simply put, he is both a copyrighted character and much too much of a celebrity these days to bother with the likes of us.
As we close out this rather tumultuous year, we hope you will get some joy from reading this fictional interview with a beloved courier.
Q: Thank you for joining us today, Dasher. It’s a pleasure to have you here to discuss some of the supply chain challenges that affect Christmas deliveries. How are you doing this holiday season?
A: Thank you for having me! I’m doing well, though the holiday season has certainly brought its own set of challenges this year. There’s always a bit of magic in the air, but the realities of the supply chain have been a hot topic.
Q: Let’s dive right in. Can you tell us about some of the specific challenges you’ve faced with deliveries this year?
A: Sure! One of the biggest challenges has been the delays in shipping routes, particularly through the Red Sea. It’s a critical pathway for many goods that we rely on for Christmas supplies, including toys and decorations. When there are disruptions in that region—whether due to geopolitical tensions or natural events—it impacts the entire supply chain.
Q: What kinds of delays are we talking about?
A: Well, shipping times have increased significantly. For instance, shipments that used to take a few weeks now can stretch into months. This means that the toys and gifts that Santa relies on for Christmas Eve deliveries are arriving late, which creates a ripple effect throughout our operations.
Q: Has the increase in ocean shipping costs contributed to these challenges as well?
A: Definitely. Shipping costs have soared this year, mainly due to a combination of high demand and limited capacity. When ocean freight rates spike, it puts pressure on everyone involved—from manufacturers to retailers to us at the North Pole. We have to be strategic about which items to prioritize, and that can be a difficult decision when so many children are counting on their Christmas gifts.
Q: How are you and Santa managing these increased costs?
A: We’ve had to get creative. Santa has always believed in the spirit of giving, but now we’re also focusing on efficiency. This includes sourcing materials locally whenever possible and optimizing our delivery routes.
Q: Have you encountered any other world situations that have impacted your operations?
A: Certainly. The effects of the pandemic have lingered longer than we hoped. Labor shortages at ports and in the shipping industry have resulted in fewer hands to move goods. And then there are the fluctuations in the supply of raw materials. If the materials for toys aren’t available, that affects production timelines and, ultimately, our ability to deliver gifts on time.
Q: That’s a lot to navigate. How do you maintain morale among your team members during such challenging times?
A: Communication is key. We’ve worked hard to keep spirits high at the North Pole. We remind everyone why we do this—it’s about bringing joy to children all over the world. Regular team meetings, festive gatherings, and a strong emphasis on teamwork have helped us push through. Plus, everyone loves a good challenge!
Q: It must be heartwarming to see all those efforts come together. How do you ensure that Santa is kept informed about these supply chain challenges?
A: Santa is very hands-on. We have daily briefings where we discuss updates on shipments, toy production timelines, and any other issues that arise. He’s always willing to brainstorm solutions, and he has a knack for inspiring us to think outside the box. We’ve had to adjust our strategies more frequently than ever, and Santa’s leadership makes a big difference.
Q: With all these logistical challenges, do you think there’s a chance some children might not receive their gifts on time?
A: Unfortunately, yes. We do our best to ensure that everyone gets their presents, but this year, we’ve had to communicate with parents in some cases about potential delays. It’s heartbreaking, but we always remind everyone that the spirit of Christmas is about togetherness and love, not just gifts.
Q: That’s a beautiful perspective. Given the unpredictability of the supply chain, do you have any backup plans in place?
A: Absolutely. We have contingency plans for various scenarios. For example, we stocked up on popular items earlier than usual and created a priority list for deliveries. We also maintain close relationships with our partners to quickly adapt if something goes awry. Flexibility is crucial in this environment.
Q: Speaking of flexibility, has technology played a role in easing these challenges?
A: Technology has been a game-changer. We use sophisticated tracking systems to monitor shipments in real time, which helps us make informed decisions quickly. Plus, data analytics allow us to anticipate trends and shifts in demand, so we can prepare better for the unexpected.
Q: That’s impressive! With so many changes happening, do you foresee any long-term shifts in how you operate during the holiday season?
A: Definitely. We’re learning valuable lessons this year that will shape our operations in the future. We’re likely to focus even more on local sourcing and sustainable practices. The pandemic has made us all rethink supply chain resilience and how we can reduce our dependence on long-distance shipping.
Q: That’s a proactive approach. As you prepare for Christmas Eve, do you have any particular strategies to ensure that the night goes smoothly despite these challenges?
A: We’ve always had a well-rehearsed plan for Christmas Eve. This year, we’re building in some extra buffer time for potential delays. We’ll also rely heavily on our network of helper elves, who have been trained to adapt quickly. Rudolph’s shiny nose will guide us through any weather issues, and we’ll adjust our routes as needed.
Q: It sounds like you’re ready for anything! Looking ahead, do you think the global situation will stabilize, allowing for smoother operations in the future?
A: I hope so! It’s hard to predict exactly how things will unfold, but I believe that industries will adapt and evolve. The challenges we’ve faced have pushed us to innovate, and I think that will serve us well moving forward. With resilience and teamwork, we can navigate whatever comes our way.
Q: Wise words, Dasher. Before we wrap up, do you have any messages for children who may be worried about their gifts this year?
A: Absolutely! To all the children out there: Remember that the true magic of Christmas comes from love, kindness, and togetherness. Gifts are wonderful, but they’re not everything. Whether you find something under the tree or not, what matters most is the spirit of the season. Keep believing, and we’ll do our best to spread joy!
Q: That’s a lovely message. Thank you for sharing your insights with us today, Dasher. We wish you, Santa, and the entire team at the North Pole the best of luck this holiday season!
A: Thank you! It’s been a pleasure. And remember, no matter the challenges, the spirit of Christmas will always shine bright!
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.
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.
That number is low compared to widespread unemployment in the transportation sector which reached its highest level during the COVID-19 pandemic at 15.7% in both May 2020 and July 2020. But it is slightly above the most recent pre-pandemic rate for the sector, which was 2.8% in December 2019, the BTS said.
For broader context, the nation’s overall unemployment rate for all sectors rose slightly in December, increasing 0.3 percentage points from December 2023 to 3.8%.
On a seasonally adjusted basis, employment in the transportation and warehousing sector rose to 6,630,200 people in December 2024 — up 0.1% from the previous month and up 1.7% from December 2023. Employment in transportation and warehousing grew 15.1% in December 2024 from the pre-pandemic December 2019 level of 5,760,300 people.
The largest portion of those workers was in warehousing and storage, followed by truck transportation, according to a breakout of the total figures into separate modes (seasonally adjusted):
Warehousing and storage rose to 1,770,300 in December 2024 — up 0.1% from the previous month and up 0.2% from December 2023.
Truck transportation fell to 1,545,900 in December 2024 — down 0.1% from the previous month and down 0.4% from December 2023.
Air transportation rose to 578,000 in December 2024 — up 0.4% from the previous month and up 1.4% from December 2023.
Transit and ground passenger transportation rose to 456,000 in December 2024 — up 0.3% from the previous month and up 5.7% from December 2023.
Rail transportation remained virtually unchanged in December 2024 at 150,300 from the previous month but down 1.8% from December 2023.
Water transportation rose to 74,300 in December 2024 — up 0.1% from the previous month and up 4.8% from December 2023.
Pipeline transportation rose to 55,000 in December 2024 — up 0.5% from the previous month and up 6.2% from December 2023.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Following the deal, Palm Harbor, Florida-based FreightCenter’s customers will gain access to BlueGrace’s unified transportation management system, BlueShip TMS, enabling freight management across various shipping modes. They can also use BlueGrace’s truckload and less-than-truckload (LTL) services and its EVOS load optimization tools, stemming from another acquisition BlueGrace did in 2024.
According to Tampa, Florida-based BlueGrace, the acquisition aligns with its mission to deliver simplified logistics solutions for all size businesses.
Terms of the deal were not disclosed, but the firms said that FreightCenter will continue to operate as an independent business under its current brand, in order to ensure continuity for its customers and partners.
BlueGrace is held by the private equity firm Warburg Pincus. It operates from nine offices located in transportation hubs across the U.S. and Mexico, serving over 10,000 customers annually through its BlueShip technology platform that offers connectivity with more than 250,000 carrier suppliers.