THE CUSTOMER

Riviana Foods is a leading rice company and marketer of wild rice. The company is a wholly owned subsidiary of Ebro Foods, which operates in the rice sector across the globe through an extensive network of subsidiaries and brands in more than 80 countries spanning Europe, North America, Asia, and Africa.

THE PROVIDER

Franklin, Tennessee-based ProvisionAi offers sophisticated suites of optimization tools for load building and transportation load leveling that reduce total supply chain costs.

Like many companies over the past few years, Riviana has faced challenges when looking for trucking capacity, especially when demand spikes. One way companies can address this, even when capacity tightens, is to ensure all truckloads are optimized to their maximum legal capacity when they leave a facility.

To help its supply chain organization meet this goal, Riviana turned to Auto02 (Automatic Order Optimization), a load-building solution from ProvisionAi.

Selling a Broad Profile

As a large rice processor—its plant in Memphis, Tennessee moves more than 10,500 shipments annually—Riviana sells a wide range of products to retailers, industrial companies, and food service organizations, among other clients.

Shipments can vary from small, lightweight rice cups to 20-pound bags of rice geared to food service operations. “It’s a broad profile,” says Jennifer Phillips, Riviana’s director of transportation. Shipments generally travel by box car, intermodal, and truckload.

Riviana Foods is a wholly owned subsidiary of Ebro Foods, a global leader in the rice vertical. Ebro Foods’ network of subsidiaries and brands spans more than 80 countries across Europe, North America, Asia, and Africa.

The range of products and weights Riviana ships can present challenges when trying to load a truck so all the space within the trailer is fully utilized. Riviana had been using a load planning solution, but even so, trucks would often ‘weigh out’ before they ‘cubed out’, says Zachary Dale, Riviana’s supply chain continuous improvement manager.

Optimizing Truckloads

In the United States, most truckload shipments travel on 53-foot trailers that provide a bit more than 4,000 square feet of capacity, says Tom Moore, founder and CEO of ProvisionAi.

Most trucks traveling on highways can haul between 45,000 and 50,000 pounds. Because many of Riviana’s products—like sacks of rice—are heavy, shipments often meet the weight capacity of the truck before they’ve actually filled the space available.

The breadth of products Riviana offers and the range of pallet weights can also make it challenging to train new employees to properly load trucks.

“More efficient loading and better truck utilization could cut both the number of trucks on the road, as well as transportation costs,” Phillips says.

Generally, when shipping a variety of product sizes and weights, combining products of varying weights on a truck, rather than filling it with a single product, more efficiently uses the legal weight and space available. Even when dealing with slight differences in weight, there are opportunities to take advantage of that difference in the load design.

A Good Fit

When shipping a range of product sizes and weights, like Riviana does, combining products of varying weights on a truck, rather than filling it with a single product, more efficiently uses the legal weight and space available.

To help optimize truck capacity, Riviana began working with ProvisionAi. As Dale had been researching sustainability, a key initiative at Riviana, he came across information on the AutoO2 solution from ProvisionAi. “It sounded like a good fit and referenced a lot of the issues we were having,” he adds.

Auto02 load building software uses machine learning to optimize shipments, while it also considers more than 300 parameters, including product and customer-specific loading rules, among others.

For instance, a shipper may require that all shipments of a specific product family be placed in the tail of the truck, or that all pallets be shipped on the narrow dimension. The software can accommodate this. It has been deployed by companies around the globe and across verticals.

Along with enabling companies to fit more products on fewer trucks, the Auto02 solution manages the placement of pallets so that lighter weight products are placed on top of heavier ones—“eggs on top of bricks,” as Moore says.

In addition, pallets are placed so that they’re supported when, for instance, a truck must turn sharply. This helps eliminate much of the damage that can occur during transit and from material handling.

AutoO2 bolts on to companies’ enterprise resource planning and warehouse management systems, so it can create and guide large orders through execution. It also creates diagrams workers can follow to guide them as they load shipments onto the trucks. This helps ensure that what is planned actually is loaded, and that the resulting shipments comply with relevant regulations and are protected against most damage.

ROI In Weeks

In some cases, the solution has cut deployment freight expenditure by more than 10%. Many shippers see a return on their investment within a few weeks of going live, the company says.

As Riviana worked to implement the Auto 02 solution, Dale and his team sought input from multiple departments across the organization, including the warehouse, information technology, packaging, and transportation planning teams. This helped ensure all gained a solid understanding of the solution, its potential impact, and how it could help them load more efficiently.

“This helped with the success of the implementation,” Dale says. “Everyone was on the same page and understood the goals.”

Step-By-Step Implementation

The implementation process ran about four months, Dale says. Steps included cleaning the data, and some development in SAP. Among other actions, the teams needed to develop a way to electronically send information, such as the item master with the dimensional and weight data for each product.

In addition, the solution needed to transmit the requirements that the supply planning systems needed to ensure enough inventory would be on hand in customer-facing distribution centers.

For instance, a requirement might say that Location A needs 200 cases of wild rice. Most of the development used standard SAP functionality, Moore says.

Through the connection with Riviana’s supply planning system, Auto02 knows which items are headed to which distribution center. Based on this information, Auto02 can develop truckloads that are both legal and optimized.

When Auto02 went live in late 2022, most operators quickly learned how to use the load diagrams, Dale says. The Auto02 solution reduced the learning curve for new loaders by about 80%, Phillips adds.

Almost as soon as operators can read load patterns, they’re ready to begin loading; they don’t need to first become experts in the products themselves, as well as which are stackable and which aren’t.

Riviana’s supervisors can run the programs to create loads when operators come in each day. If the inventory of loads starts running low during their shift, the supervisors can generate additional plans.

Since implementing Auto02, Riviana has seen about a 3.5% increase in weight per truck. Because freight costs fluctuate, it’s difficult to attribute changes in overall freight expense to the software. However, the increase in weight per truck, “adds up in terms of cost savings,” Dale says.

Suggestions for Improvement

The ProvisionAi team has been flexible and open to suggestions that can improve the solution, Phillips says.

For instance, ProvisionAi helped Riviana streamline the process of importing Excel files for times when demand might veer from what was expected. This could occur when a special promotion is planned that will drive demand in specific locations, and the Riviana operations planning team needs to manually tell the system where to ship products.

Now, the system will still produce a loading diagram, even though the load has been created manually. “They’re helpful in coming up with solutions for any issues or for improving the system,” Dale says.

The ProvisionAi team also has offered suggestions to help Riviana continue to leverage the solution. For instance, the team suggested weighing trucks to understand “weight per load goals.” Because the total legal weight that can be driven on U.S. highways is 80,000 pounds, if a truck weighs 35,000 pounds, as many have, the payload can be 45,000 pounds.

Weighing the Options

Over the past several years, trucks have tended to become lighter, as manufacturers try to increase mileage and allow for higher payloads. However, a loader who is used to working with the heavier trucks of the past might assume a truck weighs more than it actually does.

“By taking the time to weigh each truck, rather than relying on memory, loaders might learn that some are 32,000 pounds,” Moore says. “This means they can increase payload targets to 48,000 pounds.”

Riviana currently has plans to implement Auto02 at its plant in Freeport, Texas, which is the company’s second-largest plant.

Case Study: Taking Up Space

Challenges:

Riviana needed to optimize truckloads to use as much trailer space as possible, cutting costs and number of trucks on the road.

Solution:

Implement Auto02 load optimization software from ProvisionAi.

Results:

An average increase in weight per truck of 3.5% and an 80% reduction in the training time many new loaders require.

Next Steps:

Implement Auto02 in Riviana’s Freeport, Texas plant.

Technology

• Locus Robotics, a provider of autonomous mobile robots, released the LocusHub business intelligence engine to provide AI-powered warehouse intelligence and robotics automation optimization. LocusHub, part of the LocusOne platform, harnesses advanced analytics, artificial intelligence, and machine learning to deliver predictive and prescriptive insights.

• Rail shippers can gain better control of transportation costs with a demurrage management solution from Railinc’s TransmetriQ business unit. The new TransmetriQ module helps identify and manage demurrage situations, provides automatic demurrage estimates, identifies dwell and cycle time trends, and prioritizes cars for loading/unloading to minimize fees.

• apexanalytix, a provider of supply chain risk management solutions, launched apex Neural Engine, an AI-powered solution designed to streamline supplier interactions and relationships. The solution provides companies with a trainable risk-sensing assistant to consume risk signals from around the world and builds private knowledge bases by applying generative AI to supplier documentation.

• Kaleris unveiled new capabilities in its yard management system (YMS) to improve efficiency, operational visibility, and safety in yard operations. The latest innovations in the Kaleris YMS include intelligent movement to organize yard moves, minimize conflicts, and reduce bottlenecks as well as appointment scheduling, which assigns a specific time for trucks or carriers to arrive for shipment loading/unloading.

Products

↑ The next-generation HUBTEX Load Manager helps workers transport bulky, long, or heavy loads into and out of storage. Providing support for steering into target positions and finding the ideal lifting height, the system also offers optional preselection settings for fork adjustment and mast reachout, ensuring long goods can be transported with precision.

• The new Raymond Courier 3030 Automated Stacker offers improved motion control, object detection coverage, increased speeds, and lane staging capabilities to materials handling applications. The Courier is built on the Raymond chassis and mast and uses vision-guided technology.

• Emerson’s Appleton Baymaster LED high-bay luminaires and Areamaster LED floodlights are now equipped with energy-saving dimming as a standard feature, along with new color temperatures that minimize light pollution.

← The Autotote 64 from packaging manufacturer Loadhog is designed to work with intralogistics automation. The container features a single-shot, double-skin base that makes it smooth inside and out. It has a cantilever base edge which reduces deflection and helps ensure a smoother transition between linking conveyors, during directional change, and over rollers.

→ The LHI-DO Lightgistics series light from Smart Vision Lights is designed to deliver intense linear light in high-speed scan tunnel systems so packages can be illuminated and read, no matter the shape or material. The technology—which enables LEDs to rapidly self-trigger thousands of times per second at rates imperceivable to the human eye—maximizes the capabilities of machine vision systems while protecting employees.

• Delta, a provider of IoT-based solutions, unveiled a new wireless charging system for electric forklifts, heavy-load automated guided vehicles, and yard trucks. The new M∞Vair 30 kW wireless charging system, which recently obtained Federal Communications Commission approval, provides 95% contactless power conversion efficiency.

Services

• Bangkok Flight Services, the joint venture between Bangkok Airways and Worldwide Flight Services (WFS), a member of the SATS Group, achieved Good Distribution Practice (GDP) certification for its dedicated pharma handling facility at the city’s Suvarnabhumi International Airport. WFS customers can now avail of 27 GDP or IATA CEIV Pharma certified facilities globally, with two locations in North America aiming for certification in Q2 and Q3 2024.

• GEODIS launched a multi-carrier parcel shipping solution that offers shippers enhanced rate shopping and carrier selection capabilities. Customers in the Americas region can take advantage of a broader choice of shipping options, making informed selections for ecommerce fulfillment by comparing shipping rates based on parcel size, destination, and delivery timeline.

• Southeastern Freight Lines, a provider of regional less-than-truckload transportation services, opened a new service center in Bowling Green, Kentucky. The new facility, located at 6333 Whitney Drive, consists of 45 dock doors and offers expanded dispatch spaces.

• Old Dominion Freight Line opened one of its largest service centers, expanding its network to better serve the Northeast. The new service center located in Tannersville, Pennsylvania, began operations in March 2024 with 140 employees.

Transportation

↑ The CMA CGM Group took delivery of the CMA CGM MERMAID, the first ship in a series of 10 new 2,000-TEU container ships powered by liquefied natural gas. To be deployed in the Mediterranean and Northern Europe, the ships join the CMA CGM fleet of around 620 vessels, including more than 30 powered by alternative energies.

• PITT OHIO now offers next-day shipping lanes to New England from three of its terminals. Previously, standard shipping to New England from Cumberland and Baltimore, Maryland, and the Greater Philadelphia Area could take up to 3 days. Now, customers in New England can expect their freight to arrive in 24 hours.

• OOCL introduced its newest mega container ship the OOCL Abu Dhabi, the eighth eco-friendly 24,188-TEU vessel on its fleet. It will serve the Asia-Europe LL1 service.

• ZIM added a call to Cai Mep Port in Vietnam to its ZMP service, connecting Asia to the East Mediterranean. The updated rotation includes Pusan, Qingdao, Ningbo, Shanghai, Da Chan Bay, Cai Mep, Colombo, Haifa, Ashdod, Mersin, Derince, Istanbul, and Xiamen.

• Efret launched a road freight transport service from the UK to Morocco with scheduled departures every weekday. The direct service offers transit times of 5-7 days door to door.

Survivors on a desert island. If there’s a single role that consistently just figures it out, it’s supply chain professionals.

–Keith Moore
CEO
AutoScheduler.AI

Lost on a desert island companions. If a plane crashes, who do you want by your side? You want someone who is great at math, problem solving, prioritizing, and can get things from A to B. Supply chain professionals are the best executors out there, and like Jeff Bezos famously said, “It turns out ideas are the easy part, execution is everything.”

–Ross Williams
Director
DSJ Global, a Phaidon International brand

Wedding planners.

Our extreme attention to detail, coordination across multiple parties, and ability to foresee and mitigate risks, and solve problems ensure that a supply chain is well orchestrated, much like a seamlessly executed wedding where everyone has a wonderful experience.

–Allen Jacques
Industry Thought Leader
Kinaxis

Both wedding planning and supply chain management require logistical expertise in the sourcing, scheduling, and delivery of various components, management of multiple vendors, focus on customer satisfaction, ability to stay within budget, adherence to timelines, troubleshooting all manners of problems quickly, and meticulous attention to detail.

–Rebecca Wilson
Group Vice President, Human Resources
Kenco

Crisis negotiators. This work demands a profound ability for optimizing outcomes, maintaining adaptability in light of emerging information, adeptly executing strategies (maximizing time and risk vs. reward analysis), fostering intrinsic motivation for improvement, and embodying negotiations expertise.

–Evan Rago
Sales Director
Gather AI

Social workers help individuals, groups, and families prevent and cope with problems in their everyday lives. Supply chain professionals constantly do the same work with a host of different companies to prevent and cope with delays in the everyday movement of cargo.

–Stephen Lyman
Executive Director
Maritime Association of the Port of NY/NJ

Soccer athletes. Both professions demand team players and require strategic thinking, team coordination, and agility to pivot when faced with unexpected obstacles. Superior communication skills and a focused drive to achieve their goals are also essential qualities shared by both.

–Jose Barahona
VP Sales
Magaya

Game designers. Supply chain professionals’ knack for problem-solving, optimizing processes, and foreseeing outcomes makes them adept at creating engaging, strategic games or puzzles that challenge and intrigue players.

–Dennis Moon
COO
Roadie

Band members possess unique skillsets and manage complexity while adapting as a team to deliver on the customer experience. This requires deep expertise, a strong familiarity with what is being performed, and maybe most important, a quality of service and devotion to the craft. At our best, supply chain professionals create great music together.

–Laura Sheehy
Chief Human Resources Officer
Odyssey Logistics

Movie producers due to supply chain professionals’ adeptness in coordinating and orchestrating complex processes. Just as they manage the flow of goods and services efficiently, they can oversee the intricate logistics involved in film production, from sourcing equipment and materials to coordinating locations, schedules, and budgets. Their ability to anticipate and mitigate potential disruptions aligns with the unpredictable nature of filmmaking. They also excel in collaboration and communication, essential qualities for leading diverse teams of cast and crew.

–Inna Kuznetsova
CEO
ToolsGroup

Army generals because they constantly weigh their strategies against risk and reward. They also know all about combined operations.

–Tom Moore
CEO and Founder
ProvisionAi

Historians because origins, tracking, and transparency are vital for business growth. With B2B customer demands for digital compliance, ensuring digitally enabled origin and supply chain data is crucial.

–Sebastiaan Verhaar
CEO
Sana Commerce

Aviation control tower chiefs. Like chief controllers who must consider vast amounts of data from multiple sources to make timely, critical decisions, supply chain managers possess the unique ability to oversee complex networks to ensure the seamless flow of goods.

–Lilian Bories
Chief Marketing Officer
TradeBeyond

NBA general managers, handling player transactions, contracts, coaching hires, and serving as a link to ownership. Likewise, supply chain pros oversee all aspects of supply chain operations, from procurement to production, ensuring efficiency and communication with upper management. In both roles, seamless execution is key to success.

–Itamar Zur
Co-Founder, CEO
Veho

Chefs. You have to ensure the right ingredients get to the right place at the right time. A complex dish can require a lot of different processes, and one bad egg can spoil the batch. These are realities that everybody in a supply chain closely understands. Everything is about timing.

–Bryan Gerber
Founder and CEO
Hara Supply

Acrobats. In the supply chain, we constantly seek balance for our customers from beginning to end. Not only are flexibility and speed vital to success in both professions, but we have to be daring and innovative while working interdependently with a low margin for error.

–Sarah Damschroder
Vice President of Human Resources
GEODIS in Americas

Chess players. Like chess champions, supply chain professionals must think a few steps ahead to get inventory in and out of the warehouse and to their final destinations in a timely and efficient manner.

–Steven Hyman
COO
Global Messenger and Logistics

Adventure tourism leaders. Supply chain professionals possess the skills to lead adventure tourism and expedition planning services. Their attention to detail and strategic planning abilities make them ideal leaders for orchestrating high-stakes expeditions. For example, trekking up Mt. Everest, a supply chain pro could coordinate how exactly to get you and the supplies to the peak.

–John Donigian
Senior Director–Supply Chain Strategy
Moody’s Analytics

Parents. Parenting is problem solving in the face of constant change, many unknowns, and zero chance of perfection. Raising resilient children and managing supply chains have many parallels. Supply chain professionals are constantly applying capabilities such as generalization, abstraction, and subjectivity to complement technology.

–Elton Brown
Consultant
DMS

Space ship controllers because we are used to real-time events, with constant changes, and “failure is not an option” mindsets. We move all of the goods that are around us, day by day, decade upon decade.

–Danny Schnautz
President
Clark Freight Lines

Backpackers. Supply chain professionals are amazing problem solvers, even when hindered by limited resources. We’re also used to moving and working under weighty conditions. Whether we’re loaded down with gear and supplies, or carrying the even heavier expectations of our customers and fellow departments, we know how to keep moving forward when the going gets tough.

–Jessica Windham
CEO
Solving Work

Robot programmers. When programming a robot, you need to do so with an eye on what the ultimate endgame is. You need to plan from the start where you want things to end up, before you direct each of the steps it takes to get there. Supply chain professionals do this every day—coordinate several moving parts to reach the ultimate goal of getting something from A to B.

–Alejandro Suarez
Director of Strategic Engagements
Realtime Robotics

Magicians.

They have to deliver what some would think is impossible every day. They must seamlessly coordinate complex processes, anticipate challenges, and adapt to changing circumstances. They need to juggle multiple elements at the same time and perform flawlessly or their organization fails.

–Stephen Dombroski
Director, Consumer Markets
QAD

Because they make the impossible seem possible. Crafting a magic act involves careful planning to ensure each trick flows seamlessly. Supply chain pros are strategic planners, designing and executing plans. The behind-the-scenes “magic” of supply chain makes complex processes look effortless.

–Karin Stevens
EVP, Chief Marketing Officer
Overhaul

Both require logistical expertise, with the former strategizing the movement of goods similar to how magicians plan their tricks. While supply chain professionals may not use sleight of hand in the literal sense, they do need to be skilled at efficiently handling goods and managing items with precision to keep customers happy.

–Eric Allais
President & CEO
PathGuide Technologies, Inc.

Air traffic controllers.

Both jobs require exceptional critical thinking and decision-making abilities to solve complex problems in high-pressure situations. The stakes differ, but the skill sets are very similar.

–Carlyn O’Hanlon
Senior Talent Acquisition Manager
Arrive Logistics

Each profession orchestrates complex operations to reduce disruptions. In addition, each must anticipate and respond to changes with safety and efficiency as their top priority. Precision, strong communication, and planning are critical skill sets in both roles.

–Mike Trudeau
Executive Vice President of Business Development
Montway Auto Transport

Supply chain professionals must have the aptitude to see the big picture and detect deviations in the orderly flow of goods and services. For this, they need visibility—provided by a business network and sometimes a very tall control tower. They also need to make timely mid-course corrections to mitigate risk and keep the components of their respective cargoes safe.

–Tony Harris
SVP & Chief Marketing and Solutions Officer
SAP Business Network

Event planners. The skill set required in supply chain management parallels the expertise needed in event planning. Both roles demand meticulous planning, coordination, attention to detail, and organizational abilities. Both fields also demand working under pressure to ensure seamless coordination and mitigate potential issues.

–Fernando Correa
CEO and Co-founder
Cargobot

Customer experience strategists. Their deep understanding of the intricacies of supply chains allows them to identify critical touchpoints and leverage these for enhanced customer satisfaction and loyalty. By optimizing these areas, they can significantly impact the overall customer experience, driving retention, and fostering positive brand perception.

–Nishith Rastogi
Founder and CEO, Locus.sh

Business leaders as many possess a unique skill set equipping them for leadership success. Their proficiency in managing resources, optimizing processes, and navigating complexities allows them to lead with efficiency, strategy, and resilience in dynamic business environments—which is particularly crucial in today’s uncertain economy.

–Joe Galvin
Chief Research Officer
Vistage

Supplier marketers. In an era of global instability, the need for enterprise to be the “customer of choice” for its suppliers is urgent. By applying marketing ideas to suppliers to build strong relationships and create value to capture value, pros can become a guiding force in a complex procurement ecosystem. As technology continues to explode, one outcome will be the rise of supplier marketing.

–Anthony Payne
Chief Marketing Officer, HICX

Innovators. Amid complex logistics, rising shipping costs, port congestion, labor shortages, and fluctuating unloading rates, supply chain experts benefit greatly from leveraging the latest robotics technology. Robots excel at hazardous and labor-intensive tasks like truck unloading freeing resources to focus on other priorities, thereby enhancing operational agility and predictability.

–Mike Fair
Director, Product Management
Boston Dynamics

Emergency room physicians. They are proactive and constructive but also have to be great in the face of chaos. They are also problem solvers with agility and the ability to pivot when faced with challenges, all while leaning on their training and experience to manage critical opportunities.

–Mark McEntire
CEO
Princeton TMX

Crisis managers. They need strong problem-solving skills, the ability to work under pressure and the dexterity to collaborate with a diverse set of stakeholders.

–Nina Reinhardt
Chief Communications Officer
RXO

Orchestra conductors.

“Conducting” suppliers, “rehearsing” logistics, and “tuning” end products to match demand. Similar to musicians in an orchestra, raw materials and manufacturers must harmonize and synchronize to create the desired end products and ensure on-time in-full deliveries.

–Nirav Patel
CEO
Bristlecone

In both roles, there are an incredible amount of moving parts that all have to be coordinated and “played” at the same time in order to be successful. Many specific actions may seem out of place when viewed alone. But when all of those actions are integrated, and “played together” a supply chain can sound like a beautiful symphony.

—Josh Dunham
CEO and Co-founder
Reveel

Just like conductors harmonize the various sections of an orchestra for a flawless performance, supply chain pros expertly coordinate logistics, inventory, and replenishment to keep the business symphony playing smoothly. Plus, they’re always ready to improvise when necessary!

–Laurence Brenig-Jones
VP of Strategy & Marketing
RELEX

Because of their knack for orchestrating complex systems. Like conductors interpreting a composer’s vision, they understand overarching goals and coordinate diverse talents within teams. Their leadership skills allow them to harmonize individual elements into a cohesive symphony of efficiency, ensuring flawless execution and desired outcomes.

–Omer Abdullah
Co-Founder
The Smart Cube

The answer may be blockchain technology, which can be used to build applications where multiple parties can transact directly via a peer-to-peer network, without the need for a central authority to verify transactions.

With blockchain, companies document production updates to a single shared ledger that provides complete data visibility and a single source of truth. Because transactions are always time-stamped and up to date, companies can query a product’s status and location at any time. This helps to combat issues like compliance violations, delays, and waste.

In addition, companies can take immediate action during emergencies such as product recalls, and the ledger audit trail ensures regulatory compliance.

Moreover, blockchain technology is now mature enough to interface with, and take advantage of, other emerging smart technologies such as IoT, smart contracts (pieces of code stored on a blockchain), and AI to provide an enhanced and secured supply chain and automatically track production, transportation, and quality control conditions.
There are great strategic reasons to implement blockchain, such as:

Reduced risk. Access to reliable data can help mitigate risks thanks to the timely identification of issues and potential alternatives. Blockchain creates a trusted, shared, and decentralized ledger that eliminates silos and guarantees all parties access thanks to tamper-proof records that help ensure the data’s trustworthiness.

Improved visibility and transparency. A blockchain-based supply chain can digitize physical assets and create a decentralized, immutable record of all transactions across the end-to-end value stream when paired with IoT devices and RFID tags.

Increased trust. By recording all supply chain transactions on a shared and immutable ledger, blockchain provides a level of trust that was previously impossible.

While this all may sound good—but challenging—it raises the question of how to actually implement it. Some generic implementation steps include:

1. Identify the potential use.
2. Develop a proof of concept.
3. Choose a blockchain platform.
4. Build and test the solution.
5. Construct the first block with all essential features.
6. Deploy the blockchain network.
7. Create a set of rules to determine how participants agree on the validity of transactions in a blockchain network (known as “consensus protocol”).
8. Build out the blockchain ecosystem.

To get started, select supply chain software—often integrated with a “platform” such as IBM or Amazon Web Services—that utilizes blockchain technology for more accuracy, reliability, transparency and trust.
Maybe it’s time to unblock your supply chain with blockchain.

Cold Chain Tech Glows

Ember LifeSciences and the U.S. Anti-Doping Agency (USADA) have partnered to enhance the efficiency of blood-sample shipping processes for upcoming sporting events, including the 2024 U.S. Olympic Team Trials.

Ember LifeSciences’ cold chain technology focuses on self-contained, self-monitoring shipping systems for items such as temperature-sensitive pharmaceuticals, vaccines, and lab specimens. The Ember Cube (photo above) provides a fully integrated solution to common and costly challenges in cold chain shipping. Its design addresses issues related to tracking and temperature-sensitive deliveries, ensuring secure transport and preserved efficacy of medicine and specimens.

The USADA used the Ember Cube at several sporting events in 2023, including the Boston and New York Marathons and the Ironman World Championship in Kailua-Kona, Hawaii.

Through these events, hundreds of blood samples from elite athletes were transported in Ember Cubes to drug testing labs across the United States. Leveraging Ember’s cloud-based dashboard, USADA was able to monitor the real-time location, ambient temperature, and payload temperature of the Cubes during transit, ensuring that the blood samples maintained optimal temperatures and chain of custody was retained throughout the journey.

Beyond addressing shipment delays, the Ember Cube presented USADA with a cost-effective, integrated shipping solution given its reusability and advanced features, including self-refrigeration capabilities to store collected blood samples before and during transport. The Cube’s integrated temperature monitoring also eliminated the need for a standalone temperature logger, enhancing the overall efficiency, simplicity, and reliability of the process.

6 Healthcare Supply Chain Trends to Monitor

It will take next-level healthcare supply chain management to deliver next-level healthcare, according to DHL’s latest whitepaper, Delivering Next-Level Healthcare, which identifies these six key trends driving healthcare logistics.

1. Patient-centric healthcare. Today’s personalized treatments require closer links between pharmaceutical manufacturers and patients. And patients now expect the same choice and convenience in healthcare as in the commercial marketplace, driving growth in the consumer healthcare segment.

2. Advanced therapies. New approaches supplant simpler, more generalized medicines. For example, complex cell and gene therapies are developed in small batches that require tightly controlled two-way supply chains. Biopharma products need to be handled carefully at every stage in the supply chain, prompting robust investments in cold chain logistics.

3. Digital healthcare. The pandemic fueled an explosion in remote healthcare, including “decentralized clinical trials” where shipments of urgent, sensitive, and temperature-controlled medications replace the movement of patients. This results in more complex healthcare supply chain management, with sophisticated sensor and asset-tracking technologies for cross-system visibility and auto-replenishment. It also has applications for blockchain technologies to guard against counterfeiting and data theft.

4. New ecosystems. The urgency with which the COVID-19 vaccines were developed and distributed reset expectations, not just for the pharmaceutical industry but for logistics as well. Accelerated timelines have led some large healthcare providers to turn to outsourced logistics providers to handle the critical flows of medicines and devices throughout the supply chain.

5. Sustainable solutions. Carbon-neutral warehousing, alternative fuels, closed-loop returnable packaging and container systems, and optimized inventory and delivery models can ensure high levels of availability while minimizing waste and helping the industry meet its emissions goals.

6. Resilience. The pandemic and its after effects brought unprecedented stress to global healthcare supply chains. The desire to avoid future disruptions has led to a “great supply chain rethink,” including more localized supply chains for essential healthcare products and insourcing of critical pharmaceuticals, active ingredients, and medical supplies.

RFID: Hospitals Tag Along

The global RFID market is experiencing significant growth and is projected to reach $40.9 billion by 2032, up from $15.8 billion in 2023, according to Markets and Markets research. Applying RFID technology to healthcare is expected to grow at the second-highest rate during the forecast period, the research finds.

Patient monitoring within hospitals presents ample opportunities to integrate RFID solutions. These technologies offer a means to track and accurately identify patients, which enhances safety protocols. By leveraging RFID-enabled patient monitoring solutions, hospitals can optimize patient flow and throughput, streamlining routing workflows while reducing medication errors.

These systems also facilitate the monitoring of patient movement history and activity levels, ensuring comprehensive room-level patient visibility. Additionally, RFID technology can detect instances of patients falling from beds or wheelchairs. Real-time monitoring capabilities afforded by RFID solutions offer a proactive approach to preventing such incidents.

“The demand for temperature-controlled shipments, especially for vaccines, is on a steady rise. This trend, coupled with the fact that most healthcare-related items also require temperature control, could potentially lead to a squeeze in the availability of services. It’s crucial to anticipate these challenges and ensure we are prepared to meet the growing demand.”

—Joel Pinsky,
President,
Customized Logistics and
Delivery Association and
CEO and CFO,
Global Messenger and Logistics

At-Home Tests Not Going Away

Over the past few years, in large part due to COVID-19, healthcare providers have become more comfortable with patients self-administering tests and reporting the outcomes. As a result, the market now offers more intelligent, technology-forward devices for general consumers proactively taking charge of their own healthcare.

As healthcare and medical device companies continue to navigate this booming market, they’re also running into a host of issues: regulatory compliance, risk mitigation, quality assurance, logistics and distribution, inventory management, and typical global supply chain disruptions.

In the life sciences space, regulatory compliance is critical to guaranteeing that at-home testing kits and medical devices safely get to consumers. Companies are subject to strict mandates imposed by health authorities across the globe.

The challenges that at-home testing kits and medical devices face in supply chains aren’t going away, and are likely to get only more nuanced. It’s vital that providers work with partners that have experience in medical device logistics to help mitigate risk and successfully navigate this rapidly evolving market.

– John Marrow, President, RRD Supply Chain Solutions

While efficiency and cost control remain critical, resilience is quickly moving up the list of priorities. Holding back the many obstacles faced by today’s supply chains is now a must-do.

“As companies grapple with economic and geopolitical uncertainties on a global scale, the imperative to construct resilient supply chains is more pronounced,” says Elizabeth McGuire, director and supply chain lead with Clarkston Consulting.

To meet this goal, supply chain leaders can turn to a range of technology tools—artificial intelligence, digital twins, interconnected platforms, and mobile robots—among others.

Challenges and market fluctuations have always been a constant for supply chain operations. “Geopolitical actions, regulations, and policy are always in a state of change, while natural disasters, global conflicts, and threats from various supply chain nodes continue to ebb and flow,” says Mary Rollman, supply chain leader with KPMG.

What has changed is the intensity and frequency of these challenges. As supply chains become more global, they are more likely to be impacted at a global scale when local events occur.

In addition, the ecommerce boom of the past few years means many brands are competing with a seemingly limitless pool of companies. Carrying a massive range of inventory may be key to remaining in the game. However, the expanding volume of SKUs (stock-keeping units), as well as the range of channels through which many companies sell their products, adds to volatility, says Nate Rosier, senior vice president, consulting with enVista, a supply chain and enterprise technology consulting firm.

As more companies shift some production out of China, they have to adjust to different shipping schedules and lead times, which also can add volatility. Moreover, many companies’ supply chain processes have been cobbled together over time, and “were never designed to handle this much volatility,” Rosier explains.

Leveraging Uncertainty

While many supply chain organizations recognize that uncertainty is here to stay, fewer than 10% of companies expect to gain revenue when exposed to uncertainty, according to recent Gartner research.

Supply chain leaders must think about how to prosper in an environment of uncertainty, recommends Tim Payne, vice president and analyst with research firm Gartner. The approaches of the past no longer are enough.

While many supply chains managed disruptions with what Rollman calls “manual muscle,” that approach is no longer sustainable. To do more with less, supply chain organizations need to invest in technology tools.

Many are doing just that, implementing technology such as warehouse management systems, as well as more sophisticated solutions that support the use of data and information to improve decision making. Common investments include the following:

Supply Chain Platforms

Source: Accenture research report

Platforms can play a key role in supply chain operations. One way companies can increase resilience is by expanding their supply base to multiple vendors, often in different regions of the globe. As they do, a technology platform can provide process controls and a single source of data for their transactions.

These attributes enable process consistency and consequent predictability that bring stability as vendors are added. This, in turn, facilitates supply chain diversification and resilience, says Bryn Heimbeck, president and co-founder of Trade Tech, which offers technology that addresses global trade complexities.

Probabilistic Planning

Working with probabilities—expressions of uncertainty—is a critical tool for shoring up supply chain resilience.

“The more you work with probability, the more knowledge you can gain about how uncertainty impacts your supply chain,” Payne says. With this knowledge, supply chain leaders are better prepared to take advantage of uncertainty.

Conversely, static planning assumes no uncertainty—a largely unrealistic assumption. With no knowledge of the impact of uncertainty on their supply chain, organizational leaders are at risk for making poor decisions about the design and use of agility and responsiveness, Payne says. That leaves their supply chains vulnerable to losing value when exposed to uncertainty.

Several vendors are moving into the market with probabilistic forecasting products, Payne adds.

Advanced Analytics

The category of advanced analytics includes tools that use data science to predict patterns and estimate the likelihood of future events, among other functions, then leverage this insight to address complex business problems.

For example, machine learning capabilities, as part of advanced predictive analytics, can detect previously unrecognizable patterns in data, driving greater certainty in determining how demand will materialize.

Digital Twins, Artificial Intelligence, and Internet of Things

A digital twin can represent one or more supply chain processes designed to help organizations simulate real situations and their outcomes and then make informed decisions.

When combined with Internet of Things (IoT) technology, a digital twin can help employees work in ways that enhance communication, operations, and processes, and boost efficiency, says Rajinder Bhandal, Ph.D., a management lecturer at Leeds University Business School, and a member of the Digital Twin Consortium Academia and Research Working Group.

For instance, the two solutions together can facilitate better quality data and data sharing. The data can be mapped onto multiple supply chain processes where workers interact to provide visibility and improve decision-making.

Linking advanced AI tools with digital twins can also help organizations plan for and adapt to supply chain disruptions. To help in developing robust scenarios and recommendations, the tools should allow for modeling multiple “what-if” scenarios based on changes within the supply chain, and should be able to ingest diverse sets of data.

Generative AI

Currently one of the most buzzed-about technologies, generative AI refers to machine learning systems capable of generating text, images, code, or other content, often in response to a user’s prompt. A primary benefit is efficiency, as generative AI can automate many tasks; Accenture research shows that generative AI could automate or augment up to 58% of supply chain processes.

This enhanced efficiency can lead to greater resilience. For example, an AI-powered interface could help supply chain employees efficiently query and receive recommendations for demand and capacity planning insights in everyday language. With this information, they can quickly prepare for or respond to volatility.

One example of a generative AI supply chain tool is TrusTrace, which offers a traceability and compliance data platform. It uses optical character recognition (OCR) to convert into a standard format the many varied documents that make up supply chains, such as purchases orders and emails. It uses AI to train the OCR software.

With artificial intelligence, the OCR solution can attain 80% accuracy on new documents after just a few days of training—a process that previously would take a few weeks, explains Shameek Ghosh, CEO and co-founder of TrusTrace.

AI-enabled supply chain traceability, an element that has often been a concern for companies working to improve their environmental impact, also can increase resilience by helping companies quickly pivot when needed, Ghosh adds.

Visibility Solutions

Supply chain visibility tools like this chat bot from FourKites provide shippers with access to critical, end-to-end supply chain data they can use to make faster decisions and stay ahead of disruptions.

Often, transshipment and final destination ports can be “a black hole for data,” says Seth Fredrickson, vice president of product management at FourKites, which offers a supply chain visibility platform. Shipments can get lost due to disjointed communications and confusion. “When disruptions occur, every minute matters,” Fredrickson says.

End-to-end supply chain visibility can lead to better decisions and lower costs. Case in point: Pasta brand Barilla, which operates 30 production sites across multiple countries, uses FourKites’ Dynamic Ocean solution to increase visibility and shipment information for its ocean freight.

By leveraging dependable data and predictive estimated arrival times, among other information, cross-functional teams have access to critical global supply chain data when they need it.

“Before we started using the FourKites platform, we could only react to an issue when it was too late,” explains Davide Busato, Logistic Competence Center Innovation project manager with Barilla. “Now, we react before an issue escalates into a major problem.”

Robots

Autonomous mobile robots (AMRs) enhance supply chain resilience through their efficiency, adaptability, and flexibility, says Jeff Clark, executive vice president with ODW Logistics, which implemented an AMR solution for a national beverage company that was able to almost double its number of units picked per hour.

AMRs can also be swiftly deployed or reconfigured in response to shifts in volume and customer demands. “This agility empowers operations to promptly adapt to unforeseen changes in production volumes or distribution requirements,” Clark says.

Automation

An automation portal enables Montway Auto Transport to centralize order processing, transportation planning, and inventory management so it can respond quickly to demand.

Orchestrating tools, processes, and resources to function more effectively in order to boost supply chain resiliency is one important element of the automation trend.

For example, Montway Auto Transport, as its name indicates, offers auto transport services. Its Montway Automation Portal (MAP) centralizes order processing, transportation planning, inventory management, and other processes.

“This provides a more efficient, data-driven operation that can respond quickly to supply disruptions as well as consumer demands,” says Mike Trudeau, executive vice president of business development.

For instance, car dealers typically source vehicles locally, ignoring more distant markets due to perceived transportation costs. MAP allows them to generate quotes without committing to orders, so they can assess how transportation costs would impact the profitability of potential vehicle purchases. This helps dealers enlarge and diversify their supplier base.

Data Lakes

As a central repository that stores large volumes of data in their original form—whether structured, like spreadsheets; semi-structured, like web pages; or unstructured, like images—a data lake allows data to be processed and used for analysis. Data lakes offer shippers the ability to gain insights into various options that can effectively mitigate future supply chain risks.

Design for Resilience

Source: Supply chain organizations’ response to Gartner research study

Along with technology, thoughtful supply chain design is essential for resilience. “Supply chains are either purposely designed or ad-hoc designed,” says enVista’s Rosier. Purposely designing for resilience means planning for seasonality and fluctuations, and then assembling a blend of fixed and variable capacity to meet demand.

Building supply chains that can withstand uncertainty, however, may no longer be enough. Companies need to consider strategies that can help them learn and adapt so they can gain value from uncertainty. It’s what Tim Payne of Gartner calls “anti-fragility.”

This approach requires stress-testing the supply chain, and continuously asking, ‘If this were to happen, what are options to take advantage of it?’

With the right tools and techniques, companies can embrace anti-fragility and build crucial supply chain resilience to help them face off against the next inevitable challenge.

Small Companies Go Big on Resilience

Supply chain resilience isn’t the sole realm of corporate behemoths. Small and mid-size businesses also need to boost resilience to deal with uncertainty. Here are some tools and processes that can help SMBs firms drive resilience.

1. Low-code development. This method of software development requires minimal coding and offers drag-and-drop functionality through an easily navigable graphical user interface (GUI).

How does this relate to supply chains? “Platforms for low code have made the process of developing new applications very easy for less-technical people,” says KPMG’s Mary Rollman.

One area that has seen a lot of low-code solutions development is supply chain planning. Because these solutions can be personalized, they often enjoy strong adoption, unlike software that requires users to change their processes.

2. Artificial intelligence. Even small companies are getting into AI, says Tim Payne of Gartner. They can start small, focusing on even one specific area that’s causing the most pain, such as transaction history.

3. Software as a Service. SaaS solutions are an affordable option for many companies. With SaaS, companies typically avoid initial hardware costs and benefit from flexible payment options, like pay-as-you-go arrangements.

4. Processes. Organizations of any size can take steps to empower decision-makers so they can make informed choices that contribute to more agile and adaptive supply chains, says Elizabeth McGuire of Clarkston Consulting. These choices include:

• Identifying the business’s most impactful vulnerabilities, such as technology, suppliers, or location.
• Developing a supply base that leverages alternative suppliers or an inventory strategy to support single or sole suppliers.
• Using technology to ensure operations can grow and/or are stable.
• Placing inventory so it’s aligned with product distribution and meets customer service levels, while also reducing the risk of excess and obsolescence.

2. Be Flexible with Schedules. Carriers appreciate shippers that offer flexible schedules, large delivery windows, and fast yard check-in and check-out. Providing flexible appointment times and accepting trucks during “off” hours, such as evenings and weekends, helps carriers better utilize their vehicles and gives them the ability to pick up loads at less busy times.

3. Give Sufficient Lead Time. The more lead time you can provide carriers, the better off you’ll be. This helps carriers schedule their operations more efficiently. Giving your provider weeks of notice—as opposed to days—greatly improves your odds of being accommodated, while firmly positioning you in the “easy to work with” category.

4. Provide Driver Amenities. Truckers spend excessive amounts of time behind the wheel of their rigs. Providing restrooms, break areas, and parking for drivers can go a long way in making your location more desirable.

5. Provide Drop-and-Hook Capability. Drop-and-hook freight is trucker-friendly, as it allows the driver to drop off a load and hook up to a pre-loaded or empty container at the same facility. Drivers are more likely to accept freight from shippers that provide this option because it enables them to spend more time on the road, maximizing their earning potential.

6. Communicate Clearly. Carriers are often frustrated when shippers provide incomplete instructions. That’s why it’s important to maintain clear and consistent communication. Keep carriers informed about any changes to shipments and be readily available to answer questions. An effective solution is to create a link on your company’s website where carriers can easily obtain scheduling and policy procedures. Also, consider hosting regular carrier conferences and solicit feedback to learn about ways that you can improve as a shipper.

7. Minimize Loading/Unloading Wait Times. Each minute that a trucker is stuck at a shipper’s facility is time off the road—time that can’t be utilized for hauling new shipments. Provide convenient access for drivers with a yard that is easy to navigate when coming and going. Additionally, have your equipment and manpower ready to go when a truck arrives. Shippers associated with excessive wait times will have difficulty impressing carriers.

8. Be a Predictable Partner. Carriers like to do business with shippers that are predictable. Strive to be reliable with your shipping volume and avoid last-minute changes. The more predictable you are, the easier it is for carriers to integrate your shipments into their planning.

9. Utilize a TMS Solution. Transportation management system (TMS) technology solutions help carriers increase the predictability of loads, providing them with greater visibility further upstream. This will also help carriers improve their route planning and driver scheduling functions.

10. Focus on Partnerships. Teamwork and relationships really matter in logistics. Recognize that your carriers are supply chain partners that deserve to be treated with the same respect as customers. Working together to identify and solve problems that impact both parties will serve you well in becoming a shipper of choice.

SOURCE: Jagan Reddy, Managing Partner, Netlogistik US

So, it’s not surprising that Canada, Mexico, and the United States are among each other’s top trade partners. Canada and Mexico have been one of the top three merchandise export markets for 49 states in the United States, the U.S. Chamber of Commerce reports.

“Cross-border trade with respect to Mexico, the United States, and Canada is more relevant than it ever has been. We have a stable geopolitical environment, free trade, and half a billion people between the three countries,” says David Cox, chief executive officer of Polaris Transportation Group, a provider of less-than-truckload (LTL) service between Canada and the United States, and other services. Each of the countries also boasts an educated workforce, making cross-border trade even more efficient, Cox says.

The focus on business opportunities within North America has grown over the past few years. “After 2008, we saw a lot of companies open up shop across the world, but predominantly Asia,” says Andreea Crisan, president and chief executive officer with ANDY, a provider of transportation and supply chain solutions, based in St-Laurent, Quebec.

For example, annual foreign direct investment (FDI) into China grew from around $40 billion in 2000 to $124 billion in 2011, and then growth rates dropped. In 2022, FDI into China hit about $189 billion—a massive number, but up just 4.5% from the previous year.

Rising costs for shipping, labor, and other expenses, along with the push for sustainability, have prompted companies to consider a wider range of countries when locating operations. Many organizations based in North America are assessing opportunities closer to home.

“It’s a natural transition, given all that’s going on, to come back on to the North American continent,” says Crisan. It’s also good for the planet to manufacture closer to the market for a company’s products, cutting the distance items have to be transported, she adds.

A growing number of U.S. companies are turning to nearshoring, typically in Mexico, for greater visibility, shorter delivery times, and a greater ability to influence the quality of their products, says Jose Minarro, managing director with Sunset Transportation’s Cross-Border Operations.

Mexico’s proximity to the United States, its availability of skilled labor, competitive labor costs, favorable trade conditions, and tax exemptions make it attractive for manufacturing, he adds.

The shorter transportation times are especially significant for products that are seasonal and/or time sensitive, like fashion items, says Jerry Haar, professor of international business at Florida International University. In addition, by shifting some operations from other parts of the world to Mexico, companies diversify their supply chains, lowering risk, he adds.

Boosting Nearshoring Benefits

Trade agreements between Canada, Mexico, and the United States further boost the benefits of nearshoring and cross-border trade. The most prominent, the United States Mexico-Canada Agreement (USMCA) went into effect July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). The USMCA contributes significantly to stability in rules and norms, reducing the risk to trading and investing across North America, Haar says.

The USMCA allows for a wide variety of duty-free items that can be exchanged among the United States and Mexico, Minarro says. An added benefit: Many manufacturing companies that set up shop in Mexico end up selling a portion of their production into the domestic market of approximately 130 million people, he says.

Surging Trade

“Since the inception of USMCA, trade throughout North America has experienced a surge, accompanied by a substantial uptick in investment within industries capitalizing on this opportunity,” says Rachel Honbarger, project manager with Tompkins Solutions, a provider of supply chain solutions.

In 2022, exports of U.S. goods with the USMCA were $680.8 billion, up 16% from 2021 and a 34% jump from 2012, according to the Office of the United States Trade Representative. Imports of goods through the USMCA also grew, rising 20.5% between 2021 and 2022, to total $891.3 billion.

Cross-border trade and nearshoring within North America offers companies based in Canada, Mexico, and the United States greater opportunity for profit and growth. At the same time, companies need to consider potential risks.

One is potential changes to trade agreements or policies. Even minor adjustments can profoundly affect the functionality or expenses associated with operating such a supply chain.

An example is recent efforts by some policymakers to amend aspects of Section 321, which allows many imported items to enter the United States free of duties and taxes, so long as the aggregate retail value of the products imported in one day and exempted from the payment doesn’t top $800. A slight modification to the scope of duty-free exemptions could lead to substantial shipping expenses, making nearshore distribution economically unviable, Honbarger says.

In addition, locating manufacturing operations across the border from distribution networks increases transportation expenses due to tariffs, longer travel distances, and a rise in shipment volumes to compensate for extended travel times.

Pulling Off Cross-Border Operations

Executing a cross-border operation requires complex technological integration to ensure seamless oversight and control of the entire supply chain process.

Without this, businesses face potential product loss, challenges in restocking distribution centers or meeting customer demands, and expenses stemming from inadequate visibility into operations.

Achieving the benefits of cross-border trade and nearshoring within North America—including increased profit and accelerated growth—demands an in-depth knowledge of the relevant regulations and documentation requirements to minimize the risk that shipments are held up by the authorities.

Working with a logistics provider with expertise and a commitment to this trade area is essential. “We’re in a 24-hour industry,” Cox says. Partnering with a quality broker that can support its clients around the clock cuts the chance of border mistakes and delays, he adds.

These providers can help shippers navigate trade across North America.

ANDY: High Standards and Customized Services

Supply chain solutions provider ANDY is well equipped to manage cross-border shipments, relying on its experience and expertise on the processes and requirements.

From its start with a single, burgundy-colored delivery truck, ANDY has grown into one of the 250 largest fleets in North America, as well as one of the fastest growing companies in Canada.

It also holds the distinction of being one of a handful of women-owned companies in the supply chain and transportation sector. “We try to empower women and place them in pivotal roles where they’re decision makers,” Crisan says.

At the same time, the men who are part of ANDY also contribute to its success. “Great men work here as well,” Crisan says. “It’s a diverse place. Our success boils down to our company culture.”

The culture has helped fuel ANDY’s tremendous growth since its start in 2001. That’s when Crisan and her father, Ilie Crisan, emigrated from Romania to Canada. A former bus driver, the older Crisan tried to find a job as a truck driver in Canada but was unable to. With savings running low, he purchased his own truck and got to work. “That’s how it started,” Crisan says.

Then 11 years old, Andreea Crisan has been key to ANDY’s growth. Among other responsibilities, she helped her father translate documents. “I grew in parallel with the company and so did my responsibilities,” she says.

ANDY now operates out of 15 locations across Canada, including eight terminals that are CTPAT and PIP certified, as well as a fleet of about 300 trucks and 800 trailers.

Its clients range from industrial and natural resource firms to retailers and manufacturers, and they can choose from drayage, transportation, logistics, distribution, and warehousing, and other transportation and logistics services.

Shippers also can choose from flatbeds, less-than-truckload and full truckload, and dedicated transport, among other options, as well as brokerage, warehousing, cross-docking, and other services. “We can act like a one-stop shop,” Crisan says. All trucks are outfitted with live tracking technology, providing clients with visibility into the movement of their shipments. They also can assess performance through reporting and analysis.

Building Cross-border Expertise

Since its earliest days as a company, ANDY has been handling cross-border shipments. “We’re experts on the processes and requirements, and well equipped to manage cross-border shipments, so there are no delays,” she says.

Because of its commitment and responsiveness to its clients, ANDY earned all the transportation business of one of its clients, in a dedicated contract arrangement. “We’ve become this company’s outsourced, dedicated private fleet,” Crisan says. For this company, ANDY provides planning, cross-docking, and daily deliveries and other services.

It’s an important and challenging role, and ANDY is more than up to the task. Because the client ships every day, its customers can place orders until late afternoon, and be confident their products will be shipped the next day.

“That’s our client’s promise to its customers, and our partnership makes us a very integral part of that promise,” Crisan says. Through the dedicated contract arrangement, the client gains quality service, predictability, and cost savings, she adds.

To achieve these benefits, ANDY worked with the company to truly understand its needs, and then tailored its services to meet them. “It’s a true partnership, and we’re working together to provide the services that can help our client achieve its objectives,” Crisan says.

Polaris Transportation Group: Customer-Focused Logistics Specialists

Along with its cross-border service, Polaris Transportation Group offers third-party logistics, warehousing, distribution, and supply chain management services.

Over the past three decades Polaris, one of the largest privately held Canadian LTL carriers, has moved 6 million shipments between Canada and the United States. “At Polaris, our principal activity is quick, transparent, cross-border transportation,” Cox says.

To ensure it can continue providing this, Polaris has cultivated an in-depth understanding of customs regulations, as well as strong relationships with customs and border protection agencies in both Canada and the United States, Cox says.

He and his team also have been very deliberate in investing in technologies that enable Polaris’ clients to work in a digitally transparent fashion.

Polaris ships a range of commodities, with a specialization in dry goods and high-value products. It also works in all transport modes. Along with its cross-border service, Polaris offers third-party logistics, warehousing, distribution, and supply chain management services.

Customers come in all sizes. “Smaller companies may move a handful of shipments a month, but those shipments impact their business, their well-being, and their reputation. I am equally in love with those businesses as much as I am the larger ones,” Cox says.

Four companies make up Polaris; three are Polaris Transport, Polaris Global Logistics, and Polaris Commercial Warehousing. In 2019, with the launch of NorthStar Digital Solutions—the fourth Polaris company—the head office housed a state-of-the-art digital lab. Among other initiatives, NorthStar Digital Solutions has explored artificial intelligence and machine learning, enabling it to continue searching for efficiencies within its processes.

Making Strategic Investments in Technology and Workforce

Polaris has also invested in robotic processing automation, artificial intelligence, and blockchain. By deploying a mobile driver application (FR8Focus) and integrating it into their TMS, clients can check the location of their freight through the customer portal in real-time.

“Everyone wants to know where their shipments are. This needs to be transparent,” Cox says. That holds true even when Polaris is working with supply chain partners, such as other carriers. “It’s seamless, transparent, and digital,” Cox says.

The use of systems like intelligent document workflow for order entry, accounts payables, and other functions, offers a “wealth of insight that enables the Polaris team to focus on managing complex situations,” Cox says.

Polaris operates a consolidation program for several U.S.-based clients that are shipping products to Canada from various regions within the United States. For this program, Polaris directs the companies’ shipments to a hub in the central United States, and then transports the cargo across the border on a single trailer.

“Shippers gain savings and certainty,” Cox says. They can be confident of the date their inventory or merchandise will arrive in Canada. This is harder to predict when products move in a piecemeal fashion.

Along with technology, Cox has been deliberate about searching for top employees, implementing best-in-class processes, and making sustainability a foundation of Polaris. “Whether it’s the environment or the social issues that affect business and the communities we’re working within—these are important to me as a business owner,” he says.

Sunset Transportation: Family Roots and Global Reach

Sunset Transportation offers all the services shippers need to conduct cross-border trade, from import/export transportation management to warehousing and transloading services.

The employee roster at Sunset Transportation includes a farmer, an Emmy winner, an Arabic speaker, a hometown pageant queen, and an amateur tractor pull competitor, along with several military veterans. The range of interests and experience among Sunsetters, as the employees are known, mirrors the broad roster of transportation and logistics services Sunset offers.

Sunset Transportation was founded in 1989 by Jim Williams. However, Sunset traces its start to 1861, when Jim Williams’ grandfather opened Williams Paper Company, which remains in operation today. Williams Paper Co. expanded its operations in 1970, when Jim Williams began managing the business’s fleet of trucks and established a thriving backhaul program.

In 1989, Sunset Transportation launched. In 2022, Sunset joined Armada Supply Chain Solutions, a food and restaurant logistics company.

For companies looking to do business between the United States and Canada, Sunset offers transportation services in all 10 Canadian provinces. It also provides import/export transportation management, truckload and LTL service, international export and import management, customs filing and management, financial support of goods and services tax (GST), and warehousing and transloading services. “We offer everything you need for cross-border trade,” Minarro says.

Working Between Mexico and the United States

Sunset also provides expertise and services for companies looking to trade between Mexico and the United States.

To help clients streamline their supply chains, Sunset takes a strategic approach to mapping their flows for inbound and outbound shipments, analyzing historical shipping data to identify sustainable opportunities to optimize freight, enhance service, save money, and improve technology. Using this insight, the Sunset team then presents a cross-border logistics solution that incorporates all the services needed for a streamlined supply chain.

In 2019, Sunset added a branch office in Laredo, Texas, offering cross-border logistics and border warehouse solutions. This was bolstered in 2021 with the opening of a cross-border office in Querétaro, Mexico, which includes an airport customs office, as well as a sales office.

Today, Sunset Transportation offers a range of services, including expedited freight, cross-border and customs solutions, international logistics, logistics management, and domestic, Mexico, and drayage carrier solutions. It also provides a comprehensive line of customs, warehouse, and freight brokers.

As important, Sunset internally handles every link of its supply chain services. “We don’t outsource customs and compliance functions,” Minarro says.

With CTPAT-certified warehouses in Laredo and Nuevo Laredo, Sunset can offer shippers solutions that keep them CTPAT-compliant from a warehousing and transloading perspective.

Sunset Transportation continues to innovate and adapt. Over the past three years, the company has collaborated with companies from Europe, Asia, and North America that are looking to establish new operations in Mexico. “Different industries, but all have the same goal: choose the best location within Mexico to manufacture a finished product or sub assembly that will be shipped into the United States,” Minarro says.

The Sunset team interacts with the customers from the planning stage onward and takes a holistic approach with every engagement.

“The deliverable at the end of the process is to provide suggestions on how to set up the logistics strategy, incorporating import and exports flows, technological requirements, and process automation,” Minarro says. “We listen to our customers and their needs, in addition to listening to the market, so we can provide the best, most efficient, and tailored solutions for our customers.”

AI-crafted large language models understand and produce human language answers to questions. But very soon, custom closed AI systems will pre-fill the documents—compliance forms, drawback forms, claims forms, you name it—required to manage global supply chains.

This breakthrough in automation will simplify and streamline repetitive form submissions based on your business rules, all driven by a custom and closed large language AI system.

Combining and blending several strains of artificial intelligence regimes has empowered not only humans, but virtual bots as well by creating non-human customers that place orders, replenish inventory, and monitor quality—all without human intervention.

Bipedal humanoid robots moving boxes around the warehouse generated plenty of media excitement and tests are underway. But that is not where the action is, yet. Inbound Logistics has covered solid examples of non-human robots energizing DCs, warehouses, and fulfillment centers and amping ROI.

But having hundreds or thousands of robots in large distribution centers creates some drawbacks. Even after factoring in implementation costs, the expense of maintaining local WiFi tone and remote bandwidth needed to process the data driving the bot activity is a challenge. Large DCs need multiple hotspots, but when placed close together they interfere with each other. That drives robots crazy.

Is there another technology available to address these challenges? A huge retailer is reportedly testing “for dense and hyper dense wireless deployments within an indoor commercial warehouse” that will run thousands of bots in a mega DC without hotspot interference, and with fewer demands for off-site data management. It is empowered by something called “at the edge processing.” That’s where constant reliable web tone, combined with AI and bots, lessens the demands on remote server activities by lighting up more on-site decisions. An additional bonus is the ability to have inbound communications with a very large private fleet. Is all that possible?

Yes. Elon Musk has an answer: low earth orbit (LEO) satellite 5G tone as an alternative to WiFi tone. His Starlink project has plans for up to 42,000 satellites in LEO to provide global broadband for applications inside huge warehouses and anywhere across the globe.

It is exciting times for global supply chain operations.

Attacks on shipping in the Red Sea and a drought that has curtailed traffic through the Panama Canal are also making shippers rethink their logistics strategies.

Wars, geopolitical tensions, inflation, and other trends complicate supply chain strategies as well.

Add to that the day-to-day challenges of supply chain management—routing shipments, scheduling labor, meeting customers’ ever-more-stringent requirements—and it’s no wonder demand is growing for information technology (IT) solutions that address logistics and supply chain management.

According to Inbound Logistics’ latest survey of the logistics IT market, 86% of logistics IT vendors have gained more customers over the past 12 months.

As we do each year, Inbound Logistics surveyed a broad assortment of logistics technology providers, asking for their views on the current market.

We then compiled and analyzed their responses, providing insights that we hope will help logistics professionals find new technologies to support their own operations.

Once you’ve read the 2024 survey results, check out this year’s Inbound Logistics Top 100 Logistics & Supply Chain Technology Providers, a valuable reference as you explore how best to invest in technology to serve your company’s specific needs.

Pricing Model: How do your customers pay for your solutions?

Although many technology vendors offer software-as-a-service by subscription, the practice of buying a solution outright still plays a significant role. Fifty-nine percent of the IT vendors we surveyed this year offer system-based pricing, up from 41% in 2023. And a markedly smaller proportion of vendors this year have customers who subscribe to technology based on transaction volume—53% vs. 77% in 2023.

Companies that want to pay by the seat or user will find that option with 43% of vendors this year. And 5% of vendors offer technology at no cost. That arrangement typically occurs when a partner such as a 3PL provides an IT solution as part of a broader array of services.

Industry: What industries do your solutions serve?

The vast majority of vendors in the survey—90%—report they serve customers in the supply chain, logistics, and transportation sectors. This is no surprise, since many of the technologies they sell fill the needs of 3PLs, carriers, and other service providers as well as the needs of shippers.

Those shippers are most likely to come from the retail (78%) or manufacturing (77%) industry. Both of those sectors appear to be stronger markets for logistics IT than they were in 2023, when 61% of vendors said they served retailers and the same proportion provided technology to manufacturers. Two other strong sectors are the food and beverage industry and wholesale businesses, each mentioned by 70% of vendors who completed the survey.

Solutions: What logistics and supply chain solutions do you offer?

Shippers cut costs and gain competitive advantage when their operations run more effectively. Many vendors offer technology to help shippers make those improvements.

For instance, 68% of the vendors in our survey provide optimization solutions to support, and often automate, better decision making across a range of functions.

Nearly as many—66%—offer solutions for process improvement. The same proportion of vendors include visibility solutions in their portfolios. These might keep users aware of anything from the status of shipments in progress to the productivity of individual workers, or the evolving risk of supply chain disruptions.

Another popular category is data management and analytics, which helps users extract business intelligence from operational data.

Among solutions for specific logistics functions, the most popular include order management systems (54%), transportation management systems (52%), and solutions for routing and scheduling (50%). Technologies for specialized functions that are harder to find include solutions for managing containers or chassis (offered by only 11% of respondents), drayage (12%), and global trade (13%).

Half the IT vendors in the survey provide solutions that incorporate artificial intelligence (AI), up slightly from 44% in 2023. This year, 42% offer solutions that incorporate a related technology: machine learning. But two other advanced technologies that have won attention in recent years have made little impression on logistics. Only 7% of vendors offer solutions based on blockchain, and no one this year reports any solutions that involve 3D printing (down from 3% in 2023).

Challenges: Which supply chain, transportation, and logistics challenges are the most critical for your customers?

In an era of inflation, cost reduction tops the list of critical challenges for IT vendors’ customers. In 2024, 86% of vendors cite cost reduction as a critical issue. That’s up from 78% in 2023, although not quite as high as the 94% who mentioned this challenge in 2022, when supply chains still struggled with the worst effects of the pandemic.
Another common challenge today for shippers who implement logistics IT solutions is how to maintain visibility into their operations; 70% of vendors cite that issue.

After that, the list of most critical issues depends on whom you ask. About half of vendors mention transport optimization, data management, inventory management, and labor.

Although the U.S. labor market is slightly looser than it was at this time last year, we still find more IT vendors name labor as a critical challenge for their customers this year (48%) than in 2023 (37%). On the other hand, concern about capacity has plunged: 39% of vendors list that as a critical challenge in 2024, vs. 61% in 2023.

It’s interesting to note that only 28% of vendors mention ecommerce or omnichannel enablement as a critical challenge, compared with 41% in 2023. We doubt that shippers are less interested today in multichannel sales and fulfillment strategies. Perhaps most companies that need those functions have already put good solutions in place, eliminating this issue as a significant pain point.

Customers: During the last year-on-year period, did you customer base grow or shrink? About how much?

While the vast majority of IT vendors say their customers are trying to cut costs, customers’ budgets still find room for IT investment. This makes sense, as digital solutions can yield insights and efficiencies that help companies spend less and earn more in the long run.

In 2024, 86% of respondents report that their customer base has grown since last year. Forty-one percent have seen growth of 15% or more. Ten percent of IT vendors have about the same number of customers as they did one year ago, and only 1% have lost customers.

Sales: During the last year-on-year period, were sales generally up or down? About how much?

Not only did more customers embrace logistics IT, but they spent more money on those solutions overall. Despite a tight economy, 84% of vendors in the survey saw sales increase since last year. For more than half, revenues went up by 15% or more, while 15% reported 10% growth and 13% reported 5% growth. A small proportion—6%—saw a year-on-year decrease in sales.

Profits: During the last year-on-year period, were profits up or down? About how much?

Even in an uncertain economy, profits remain strong for many logistics IT companies. Among vendors who responded to the survey, 81% have seen profits rise over the last year-on-year measurement period. That’s only a slightly smaller group than the 87% who reported such an increase one year ago. The past year hasn’t been smooth sailing for everyone, though. Eight percent of respondents in 2024 saw net income decrease over the past year-on-year period. In 2023, only 1% of vendors saw profits shrink.

Growth: What lead to growth in the past year?

Most of the growth that logistics IT vendors enjoyed over the past year came from organic sales. Eighty-five percent of survey respondents told us their companies are growing stronger thanks to revenue from customers. Another 14% attribute their growth to a combination of sales and merger and acquisition activity, while just 1% have M&A entirely to thank.

WHAT DRIVES DEMAND FOR LOGISTICS IT?

We asked vendors where—function, vertical market, or geography—they see the most growth in demand for new supply chain, logistics, and transportation technology. Here’s a sampling of their answers:

The transportation industry has always dealt with fraud, but nothing compares to the fraud that has infiltrated the industry in recent years. There is growing demand for fraud detection technologies, including load tracking and scheduling technology.

Emerging markets like Southeast Asia witness a rising need for last-mile delivery solutions due to urbanization. In developed regions, demand is prominent for predictive analytics and AI-driven optimization tools to enhance overall supply chain visibility and efficiency.

In response to labor challenges, we’ve observed a notable surge in demand for labor management systems across various sectors, notably in warehouses and distribution centers. These organizations face mounting pressure to enhance throughput while optimizing resources.

In Europe, some countries have started imposing a CO2 tax, and fuel costs have risen dramatically, so the logistics sector has a strong interest in reducing fuel usage through optimized routes.

In the realm of real-time tracking and visibility, there’s a surging demand for IoT [Internet of Things]-enabled devices and advanced analytics platforms. These technologies allow businesses to monitor shipments in real time, predict potential disruptions, and optimize routes.

We are seeing a rapid increase in companies below $500M in annual revenue looking to invest in digital supply chain transformations and move away from current homegrown, point-based or spreadsheet-based solutions toward end-to-end orchestration.

OVERCOMING COMPLEXITIES

Volatile conditions pose all sorts of challenges these days for supply chains. “There are so many possibilities of things that can go wrong in a big way or a small way,” says Seth Patin, founder and CEO of LogistiVIEW in Cary, North Carolina. These issues may concern the workforce, trading partners, supply chain disruptions, geopolitical disruptions, or many other factors.

For example, one LogistiVIEW customer, a large industrial distributor, found it difficult to manage workflow in the warehouse in the face of varying customer demand. “One of their biggest challenges was getting enough work released to keep all their people busy in all their different, complex picking zones, but not overwhelm their downstream conveyors or their picking, packing, sortation, and labeling operations,” Patin says. LogistiVIEW’s warehouse execution solution works with the warehouse management system to help the company strike the right balance.

Shippers also face variability when choosing transportation modes for their loads. “The availability, the capacity, and the cost structures are in flux,” says Brian Smith, CEO of Banyan Technology in Westlake, Ohio.

For example, parcel carriers will accept certain loads today that they wouldn’t have one year or 18 months ago. Can a shipment travel most efficiently by parcel, less-than-truckload, full truckload, or intermodal carrier? The answer changes over time with fluctuating rates, accessorial charges, and other factors.

Banyan’s freight execution software helps companies manage that variability. “Users can simultaneously pull back rate and load attribute data, transit time, etc. for all over-the-road modes, so they can make the best decision based on current rates,” Smith says.

At Odyssey Logistics in Danbury, Connecticut, recent customer surveys reveal several important supply chain challenges, including: the complexity of the requirements companies need to fulfill; cybersecurity; the need for a resilient supply chain; and the difficulties of ordinary, day-to-day logistics operations.

To help with those issues and more, Odyssey is investing in technology that harmonizes the disparate data that streams in from carriers, trading partners, and myriad other sources, so it can extract actionable intelligence from those raw materials.

“We’re spending an enormous amount of money on our IT systems right now, including a better data model and a data warehouse—the path that converts all that data into a structured environment, so we can then unleash AI and machine learning, and take advantage of those gains for customers,” says Glenn Riggs, Odyssey’s chief strategy officer.

For companies that want to use AI to automate supply chain decision making, one big challenge is determining how far to trust the recommendations AI systems provide. A human who analyzes data can explain the reasoning behind a recommendation and be responsible for the outcome. “When an AI engine or a model tells you something, there is not the same transparency or trust,” says Ram Krishnan, global head, customer success at Aera Technology in Mountain View, California.

To earn customers’ trust, Aera has designed its decision automation software to document the path to each decision. Say Aera’s platform recommends a particular routing strategy for a load. “We provide the underlying visibility, underlying traceability, all the way to a transaction,” Krishnan says. “It provides what I call a data genealogy to the decision maker, so they have full confidence in that decision.”