• ORBIS’ Ocean in Mind packaging initiative focuses on recovering and repurposing single-use plastic waste found on coastlines and using it in supply chain packaging. ORBIS blends the recovered plastic waste with other materials when it manufactures its containers and pallets.

RECOGNITION

• CSX received the inaugural W.F. Thompson Award for Class I Operating Performance for 2023. The award, presented by Loop Capital, recognizes the Class I railroad with the best operational performance in a calendar year.

• To recognize its consistent ability to deliver improved end-customer satisfaction, reliable service, and reduced transit times, Schneider Electric presented GEODIS with its 2023 Best Service Award in China.

• Zion Solutions Group was honored with the 2024 Most Valuable Partner Award by the Material Handling Equipment Distributors Association. The award recognizes companies for their commitment to education and community, and innovation.

SEALED DEALS

↑ OBI, a home and garden retailer across Europe, has selected TradeBeyond’s multi-enterprise platform for an extensive supply chain digitalization project.

• MyFBAPrep entered a strategic partnership to provide Blenders Eyewear with warehousing solutions powered by its SaaS platform Preptopia. The contract covers marketplace order fulfillment services, and logistical support tailored to Blenders’ specific needs.

↑ CEVA Logistics, a subsidiary of the CMA CGM Group, signed a new multi-year agreement to continue providing all logistics services for Scuderia Ferrari’s cars and equipment during Grand Prix events, as well as for GT races and Ferrari Challenge events.

← Channel-free logistics platform Fillogic will manage footwear brand Koio’s ecommerce and store fulfillment, reverse logistics, and transportation optimization. Fillogic converts under-utilized retail space in shopping malls into middle-mile fulfillment and reverse logistics hubs.

GOOD WORKS

→ Averitt Express and MoonPie teamed up to deliver more than 10,000 boxes containing 60,000 MoonPies to Fort Campbell to thank soldiers for their service to the country. Averitt delivered the MoonPies at no cost.

• US Foods donated more than $12 million in food, supplies, and monetary contributions to address hunger-relief efforts—the equivalent of about 5 million meals or 225 truckloads of product.

M&A

↑ PS Logistics acquired Buddy Moore Trucking of Birmingham, Alabama. The transaction enhances PS Logistics’ flatbed, dedicated dry van, and brokerage operations, and diversifies its offerings in the Southeast.

• To strengthen its geographic coverage of the European food network, Dachser acquired Frigoscandia AB, a full-service provider of temperature-controlled and frozen food logistics in the Nordic region.

• Kenco acquired The Shippers Group, a Dallas-based third-party warehousing company. The strategic partnership adds to Kenco’s capabilities by providing increased capacity, broader geographic reach, and an expanded suite of services.

↑ Ryder System acquired Cardinal Logistics, which provides dedicated fleets and professional drivers to service complex route structures across distribution centers, suppliers, and stores.

• Daseke has entered into a definitive agreement to be acquired by TFI International, a North American transportation and logistics provider.

UP THE CHAIN

Jim Heller

Chris Martens

← Global industrial manufacturer and distributor Optimas Solutions appointed Jim Heller as the new senior vice president of distribution, and Chris Martens as the new vice president of manufacturing for the Americas region.

Stephen Down

→ National DCP, the Atlanta-based foodservice company serving Dunkin’ restaurants worldwide, promoted Stephen Down to CEO. Down joined NDCP as CFO in 2023, bringing 30 years of financial and executive leadership experience.

• Magnate Worldwide appointed Matt Hamilton as president of its global forwarding services segment. Hamilton has an extensive history in global logistics and supply management, with over 27 years in the industry.

Omar Shamsie

← Omar Shamsie was named chief commercial officer of Odyssey Logistics. He will focus on driving strategic sales growth, developing vertical markets, and cross-selling initiatives to deepen customer relationships.

• Polaris Transportation Group appointed Richard Kunow as president and Dave Cox as CEO.

Katie Quinn

→ Katie Quinn, formerly the COO of R2 Logistics, has assumed the role of CEO to steer the company’s third-party logistics services and strategic supply chain solutions into the future.

Jeff Harpole

← Jeff Harpole will become chief operating officer at Ruan, succeeding Dan Van Alstine when he retires near the end of 2024. Van Alstine will serve on Ruan’s board of directors starting in 2025.

The Impact of Diverse Leadership

Diversity at the C-level is not merely a buzzword; it is a game-changer. While the transportation tech industry often sees male executives at the helm, there is a wealth of talented women who are subject matter experts at various levels.

According to the McKinsey & Company Women in the Workplace 2023 study, the transportation, logistics, and infrastructure industry does not struggle as much as other sectors with attracting women to entry-level positions (48% of the workforce), but the talent pipeline decreases with each next career step. It clearly demonstrates the infamous “broken rung,” the greatest obstacle women face in progressing their careers to the C-suite—women are represented in only 37% of the first-tier managerial positions, a whopping 11% drop from the entry-level positions.

Not surprisingly, with the talent pipeline drying up through the next career levels, only 28% of women advance to the senior vice president level, and only 25% reach the C-suite.

It is without any doubt that there needs to be more women in this industry sector. However, the statistics from the 2023 study reviewed in isolation paint only part of the picture.

If we analyze the Women in the Workplace study data over the past seven years, we encounter some fascinating findings. In my current company, women in leadership positions represent 43%, and we always strive to hire and promote from within. We value open communications and diverse opinions that demonstrate direct results on the company’s productivity and continual growth.

Next Steps

The 2019 Attracting and Retaining Women in Transportation study, published by Mineta Transportation Institute, zeroes in on 11 initiatives that can improve women’s representation in the industry. There are three focus areas:

1. Attract suitable candidates, expanding the talent pool.

2. Retain talent by fostering an inclusive work environment, providing mentorship, educational support, a flexible work environment, and promoting without conscious or unconscious bias.

3. Nurture a diverse workforce, enabling them to evangelize on the organization’s behalf to attract new candidates, including younger generations, to STEM (Science, Technology, Engineering, and Mathematics). Girls who witness women thriving in this field are more likely to pursue careers in STEM themselves.

Gender diversity in the transportation technology sector is not just about optics; it is about achieving lasting change and innovation. By breaking down barriers, we can shape a landscape that serves all communities and sets the standard for global innovation.

Yes. Since the pandemic, supply chains have undergone a shift from being perceived primarily as a cost center to an opportunity for competitive advantage. Organizations have built resilience by shifting to a more modern, digital supply chain and leveraging technology like artificial intelligence (AI) to support planning, procurement, and logistics.

–Nirav Patel
CEO
Bristlecone

Nearshoring and ally shoring have improved supply chain resilience since the pandemic, with nearshoring reducing dependency on overseas suppliers and shortening lead times, while ally shoring fosters collaborative alliances for shared risk mitigation and agile responses to disruptions.

–Mark McCullough
CEO
Gebrüder Weiss North America

No. Companies built additional infrastructure during the pandemic for more capacity. Now they need capacity in different parts of the country for different things. They need to be more efficient and instead of building even more infrastructure, utilize that unused space to save on costs, transportation, and emissions.

–Bill Thayer
Founder & CEO
Fillogic

Critical supply chains in food, health, defense, and technology are being studied and reinforced. Companies are expanding data analysis, deepening industry coordination, and enhancing resilience through disruption wargaming. Numerous global private/public partnerships are also forming.

–Alberto Toribio del Pilar
Managing Director
ButcherJoseph & Co.

Companies have adapted their supply chains to be more resilient. By incorporating risk into the optimization of stock levels, increasing frequencies of reviewing and updating system parameters, and simplifying product portfolios, businesses can continue to adapt to disruptions.

–Chip Barth
Managing Director, Supply Chain
TBM Consulting Group, Inc.

Companies diversified their supply base, increased in-region sourcing, and revised their inventory policies. They still need to address the shortage of talent in supply chain management, especially in tech innovation and advanced planning systems.

–Shamini Martin
VP Marketing
Trigent Software

Companies were single-piecing and single-sourcing, which made for a fragile platform, prior to 2020. Companies are now looking to multi-piece and multi-source, and we are seeing the confluence of planning and execution capabilities that allow for inventory sourcing decisions to match order reality.

–Andy Dyer
President, Transportation Management
AFS Logistics

Companies emerged with a focus on helping keep the supply chain flexible and adaptable to sudden shocks. By supplementing labor with robotics, advanced technologies, and new labor sourcing strategies, the supply chain is more resilient to unexpected challenges.

–Jason Minghini
Senior Vice President, Operations
Kenco

The industry has made leaps in supply chain resilience, notably through diversifying logistics networks and accelerating the adoption of digital technologies for better inventory management and demand forecasting.

–Dennis Moon
COO
Roadie

Companies are advancing supply chain resilience with automation and AI, creating enhancements and increasing productivity during periods of high demand that were otherwise manually unachievable. To mitigate long-term supply chain risks, businesses must consider other tactics like regionalization and workforce training alongside automation and robots.

–Annie Noel
Chief Operating Officer
Vention

Our clients have been more actively exploring resiliency. One method is scenario modeling, which helps companies explore the most efficient and cost-mitigating network structure by identifying where facilities should be, how many are needed, service level performance, functionality, advantages of shoring initiatives, ESG considerations, product mix, and inventory policies.

–J.C. Renshaw
Senior Supply Chain Consultant
Savills

COVID has gone from pandemic to endemic and the same has happened to supply chain disruptions; economic, geopolitical, cyber, and environmental disruptions dominate. Supply chains have become more resilient; however they have not recovered to their pre-pandemic performance with too many being bottom line—not resilience—focused.

–Matt Spooner
Industry Thought Leader
Kinaxis

Companies have made significant strides through further diversification of suppliers and more supply/product redundancies. Businesses were also forced to reevaluate and strengthen their operations where vulnerabilities became readily apparent including asset controls and employee policies.

–Michael B. Wilson
CEO
Consolidated Chassis Management (CCM)

One, businesses realized they lacked real, accurate, timely information about their shipping operations—what they were spending, what was driving expenses, how costs were increasing each year. Two, many realized diversification of carriers was important to give them the redundancy they needed in case of delays. These moves have resulted in real progress and improved resiliency across the industry.

–Josh Dunham
Co-founder and CEO
Reveel

Yes for some. Some companies have significantly leveled up their supply chain visibility so that they can react in real time with high accuracy. However, there’s still quite a few companies that need to invest in supply chain and inventory visibility to stay resilient.

–Sankalp Arora
CEO & Co-Founder
Gather AI

Companies moved toward vendor diversification, automation, nearshoring, creative staffing, and risk mitigation solutions. Many were able to test and improve contingency plans. Many will return to the old ways, but the overall industry will learn and evolve.

–Jim Heide
COO
Loadsure

The supply chain bent but never broke during the pandemic, largely due to the incredible resilience of our transportation system, and due to the risk mitigation actions taken by logistics companies. There was never a day—ever—where we were not able to locate a truck to move a shipment.

–Anne Reinke
President & CEO
Transportation Intermediaries Association

Most companies are proactively identifying alternative products in case of supply issues like delays or manufacturing bottlenecks. It’s crucial to evaluate supply chain and inventory management activities and collaborate with suppliers to ease burdens, safeguard against supply disruptions, and mitigate future pain points.

–Dakonya Freis
VP, Commercial Development
Nelson-Jameson

Overall, I would give it a C-. There have been some signs of risk mitigation, reshoring, and increasing inventory levels, but collectively we are still suffering a hangover from COVID that will take more years to resolve. It will take time to undo 40+ years of rampant offshoring.

–Joe Adamski
Senior Director
ProcureAbility

Yes and no. Since 2020, many shippers have grown more resilient by reevaluating their ordering and inventory levels, diversifying vendor relationships, investing in nearshoring, and leveraging systems or partners that provide greater visibility into supply chains performance.

However, a softening transportation market over the past 12-15 months has provided a false sense of security for companies who have not taken the time to shore up their processes, and they may struggle to adapt when cheap and reliable capacity is less abundant in a tighter market.

–Ben Steffes
VP, Managed Services
Coyote Logistics

Yes. An increasing number of C-suite executives and board members are now requesting updates on resilience readiness, but this is only part of the equation. A truly resilient organization can prepare, respond, and learn from impacts of any size and scope—which happens when resilience is ingrained into everyday operations. It’s critical that companies quickly make the investment into an all-hazards, all-assets resilience program because the frequency of impacts is not slowing down.

–Frank Shultz
Founder and CEO
Infinite Blue

Yes. Progress in supply chain resiliency has been made post-pandemic, even while we continue to adapt to new global challenges. Shippers are implementing diversification strategies around sourcing markets, with real impacts being felt in Mexico and the Caribbean. We’ve also seen a strong focus on visibility, flexibility, and clear communication between shippers and suppliers.

–Jeff Vaughn
Chief Commercial Officer
Trailer Bridge

Yes. Many companies have introduced secondary suppliers to reduce risks from single sourcing. However, prioritizing product availability over massive assortments remains crucial, as seen during the pandemic. Excessive assortment is a major contributor to out-of-stocks. Lastly, collaboration between trading partners, including sharing accurate forecasts and promptly communicating potential shortages, is crucial for enhancing the overall resilience of supply chains.

–Jeff Bornino
President, North America
TMX Transform

Yes. Post COVID we have more positioning partners developing their spot equipment options. “One-way” leasing is one option to remain viable when trade lanes become out of balance. In part the reasoning for the industry’s investment in this solution stems from tough lessons learned during the pandemic—it’s a resilient minded idea!

–Richard Kohn
Director, Global Logistics & Optimization
SeaCube Containers

Yes. Since the pandemic, companies have enhanced supply chain resilience by prioritizing efficient planning and execution, leveraging data and technologies like AI. However, it still has leaps and bounds to go. Companies must commit to customer-focused innovation and strategic diversification to enable swift response times and prepare for unexpected business fluctuations.

–Fernando Correa
CEO and Co-founder
Cargobot

Looking at our small to medium sized customers in the ecommerce fulfillment space, we hear throughout that solid planning facilitated another amazing peak season around Black Friday/Cyber Monday and the holidays. Having data to drive the right fulfillment decisions gives shippers the ability to scale warehouse operations for extreme (10x and more) sales spikes when they occur.

–Johannes Panzer
Head of Industry Solutions, Ecommerce
Descartes

Yes. Many now understand the direct link between supply chain resilience and everyday life, which is ultimately beneficial as it centers the attention on the most critical “asset” in the supply chain: the thousands of trucks, cranes, and forklifts operators who keep the supply chain running. Companies have understood that increasing safety and productivity through the right automation approaches is imperative to make those jobs, and eventually their business models, future-proof.

–Hendrik Kramer
CEO
FERNRIDE

Yes, companies have made progress toward supply chain resiliency by paying more attention to the data that monitors industry trends and the health of their supply chain network. Many companies have adopted efficiencies to better exploit their domain expertise, resulting in an overall competitive advantage and delivering a better experience to their customers.

–Eric Allais
President & CEO
PathGuide Technologies

Yes. One way I like to think about supply chain resilience is by dividing it into two factors: internal processes and external interventions. An easier way of putting this might be: operations improvement and risk mitigation. In general, supply chain companies saw the pandemic as a wake-up call that our approach to both needed to be tightened up considerably. One of the easiest legs-up is upgrading technology; good supportive tech allows you to improve your operations and risk exposure because data provides better visibility.

–Mike Ziomek
Chief Operations Officer
Odyssey Logistics

Yes. From a strict logistics perspective, most of the COVID capacity has greatly improved, including product lead times, transport times, and cost. But many customers are exploring alternatives for ingredients, packaging, chemicals, and PPE to have viable backup options. This has been a HUGE effort from customers and suppliers.

–Shawn Kitchner
VP of Operations and Logistics
Nelson-Jameson

Yes. Companies have made strides in enhancing supply chain resiliency post-pandemic. Many adopted technology for real-time monitoring, diversified suppliers, and embraced data analytics to predict disruptions. However, continuous improvement is vital, including further digitalization, collaboration, and risk mitigation strategies to address evolving challenges and uncertainties.

–George Maksimenko
CEO
Adexin

Yes, progress has certainly been made. In the automotive industry, dealerships are leveraging new tech within their transportation management systems to gain visibility into their shipments and improve reaction times. This ensures sales continuity during times of disruption and provides insights to help them work more efficiently.

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

Progress has been made, but more remains to be done. An uptick in cloud adoption is enabling greater flexibility in working locations and hours, and better visibility for all stakeholders. But, we still see too many underinsured shippers and logistics service providers. With new threats emerging, it’s wise to review coverage regularly.

–Heider Santander
COO
Magaya Insurance Services

Yes. Following the pandemic, we’ve seen incredible interest in solutions that provide resiliency in supply chains around the globe. Automating how inventory is tracked with technologies such as Bluetooth and cellular gives greater transparency, creates information redundancy, provides accountability to customers, and reduces human error.

–Brian Krejcarek
Co-founder and CEO
Reelables

More retail businesses are recognizing improved resiliency hinges on supply chain digitalization. They’re moving beyond outdated, mostly manual processes and more widely adopting multi-enterprise platforms.

–Lilian Bories
Chief Marketing Officer
TradeBeyond

Yes. Companies now tangibly appreciate its value and have begun leveraging the plethora of digital tools available to navigate potential disruptions. However, they still need to be aggressive with their digital roadmap, strategizing how to best evolve in the long term in what is a rapidly evolving landscape.

–Omer Abdullah
Co-founder
The Smart Cube

Yes, but there’s still much to achieve. The pandemic prompted organizations to reassess and evolve strategies to enhance resilience, for example shifting from “just-in-time” to “just-in-case” approaches. Technology plays a pivotal role; companies must build a technology roadmap including AI/ML, digital twins, and scenarios, to foster greater supply chain adaptability and resiliency.

–Alex Pradhan
Global Product Strategy Leader
John Galt Solutions

Top Skills to Develop

AJ Wilhoit, Chief Product Officer, project44

Obsess over the customer. People who approach every problem with “what will make our customers’ lives better?” will always win in the long term. When you obsess over the customer, you are driven to deliver big, meaningful results for your customers and business.

Act like an owner. Your job is to define, advocate, and launch the right experience for your customers—which, in turn, will drive the right results for your company. Whether you’re an introvert or extrovert, find a way to make your voice heard so that you effectively guide your team to the right outcome.

Be a force multiplier. You can only get so far as a team of one. Be someone who motivates the people around you to bring their best work, grow, and have some fun doing it.

Dennis White, Vice President, Brokerage, Crowley

Adaptability, problem solving, and change management. All three center around the ever-changing nature of the supply chain industry. To thrive in such a dynamic environment, one must have a base level of adaptability. The inevitable challenges that arise in these fluid conditions require strong problem-solving skills, and the ability to lead a team through change management can be a true differentiator.

Heather Hoover-Salomon, CEO, uShip

Gain proficiency in data analytics. As data fuels the next wave of supply chain management, gaining an aptitude for how an organization creates more value from its data will be essential.

Be an ecosystem thinker. Take a collaborative approach with other partners in the industry to elevate the customer experience for all customers.

Maintain a human touch. B2B communications can often feel stilted, disengaged, and void of heart. Remember your buyers are humans, just like you. They love relatable stories and humanizing communications around how you can benefit their business.

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

The most important skill for supply chain management is creative problem-solving. Constantly fluctuating geopolitical and market conditions, like the current crisis in the Red Sea, can create lags in delivery time, forcing companies to implement original solutions to transport products to customers.

These situations require imagination to source accurate responses, as unprecedented challenges require unprecedented resolutions.

Jeff Mahler, Co-Founder and Chief Technology Officer, Ambi Robotics

Emphasize empathy. Behind every data point, every shipment, and every transaction, there are people—customers, suppliers, partners, and employees—whose experiences need to be understood.

Empathy guides us to anticipate concerns, address challenges, and exceed expectations. It fosters resilience and collaboration in navigating disruptions and uncertainties. While technology optimizes operations, empathy drives success and fosters meaningful relationships in the dynamic supply chain.

Build a foundation in analytical and critical thinking. The future of the supply chain is data—the ability to get it, analyze it, and use it faster than anyone for competitive advantage. To do this takes good analytical skills and the ability to critically think through problems. This skill set will be important as you need to be able to break down problems and understand what the source of an issue is.

Many times supply chain issues wear a disguise, hiding the true problem and appearing as a completely different problem.

–Stephen Dombroski
Director, Consumer Products and Food and Beverage Vertical Markets
QAD Inc.

Three important skills to develop are 1) the ability to empower teams, 2) maintain a long-term focus, and 3) achieve work/life balance.

Efficient supply chain management requires seamless coordination across all links in the chain. A manager needs to provide their teams with the knowledge and skills they need to do their jobs well, but they also need to trust their teams and allow them some room to make their own mistakes.

Second, a long-term focus is critical. I’ve learned, sometimes the hard way, you need to keep your foot on the gas and keep building for the future. And last, no manager is useful to their company, customers, or teams if they are burnt out. By protecting some time for family and other personal priorities, a supply chain manager will be a more effective, productive, and balanced leader.

–Mark McCullough
CEO
Gebrüder Weiss North America

AI in Supply Chain Management:
Make it work for you

David Fisher, Executive Director, Transportation & Supply Chain Institute. University College, University of Denver

Remember AI is a tool and a methodology. Those who utilize it correctly will benefit from enhanced decision making and speed. The risk is not understanding how to use the tool correctly or worse, entrusting this technology to produce solutions that are not verified adequately. Like any new tool, AI will be most effectively utilized by those who get training.

If you plan to be a programmer or heavy contributor to the development and utilization of AI in the workplace then we would recommend that you get professional training to do so. If on the other hand, your intent is to be a user of AI-enhanced processes, you must think of AI as a new tool just as the calculator and the computer were once integrated in society in previous generations.

Lesley Veldstra Killingsworth​​​​, NMFTA Chairperson, Vice President of Pricing and Market Strategy, Polaris Transportation Group

First, get familiar with AI basics, machine learning, and data analytics. Embrace the data deluge and think strategically, not just tactically. Lastly, network, network, network. It’s important to talk with and learn from tech-savvy folks in the industry such as AI developers, data scientists, and other forward-thinking carriers. Stay ahead of the curve as AI is constantly evolving.

Dan Singer, Vice President, Dedicated Operations, Averitt

Be open-minded. We are in the early stages of determining all the applications of AI in supply chain management. Recognize that it can have a role in virtually any problem that must be solved repeatedly. It’s also important to stay abreast of each new application.

Christine Barnhart, Chief Marketing and Industry Officer, Nulogy

Foster a collaborative approach to AI implementation and involve cross-functional teams and stakeholders. This can facilitate seamless integration and maximize the benefits of AI across the supply chain. By embracing AI with a combination of technical expertise, adaptability, and collaborative spirit, supply chain professionals can then position themselves for success.

Sumit Vakil, Co-Founder and Chief Product Officer, Resilinc

Focus on rethinking processes to leverage AI’s potential to reduce manual work and enhance productivity. This means critically analyzing existing workflows to identify areas where AI can automate routine tasks, streamline operations, and optimize decision-making.

For example, look at how AI tools can be applied to forecast demand, manage inventory levels more efficiently, or improve logistics operations. Practitioners should start with small AI projects to gain practical experience and learn from both successes and failures, then slowly expand projects with the intent of developing people and processes. Embrace AI not only for its technological capabilities but also for its ability to transform business processes.

Identify and understand gaps AI can’t fill. This means that while AI is invaluable when it comes to getting a tailored approach to data (among many other benefits), supply chain managers should be the strategic, big-picture, and nuanced thinking that AI may not yet recognize in the process.

–Heather Hoover-Salomon
CEO, uShip

AI should be a tool for decision-makers and not the decision-maker itself. AI systems need a lot of data. To generate the data, a lot of processes must be digitized. It is supply chain professionals who will decide how this will be done.

The good news for humans is that their interactions have many nuances; and there are idiomatic differences across regions and countries. Can such variations be reflected in digital contracts and transportation bills of lading?

Will an AI system be able to “negotiate” contracts for two parties better than the parties themselves? If there were a legal dispute, would an AI system be able to replace judges and juries?

What is not surrendered to AI must be presided over by human decision-makers. Transportation, the most outsourced logistical activity, should be the best test-case for the promise of AI. Automating the process of transport, port entry/exit, and compliance should generate enough AI “hallucinations” to keep supply chain professionals gainfully employed for years to come.

–Dr. Darren Prokop
Professor Emeritus of Logistics, College of Business & Public Policy
University of Alaska Anchorage

Consider how AI can best advance your organizational goals. While AI is sexy, it is a tool. Take it as seriously as you do WMS, VMI, ERP, CRM. Don’t let it create blinders that prevent you from seeing other solutions.

Getting up to speed on blockchain and IoT for delivering greater transparency, traceability, optimization, and trust in the chain will put rocket boosters on your career trajectory.

–Lee Allison, Ph.D.
Associate Professor, Engineering Technology & Industrial Distribution
Industrial Distribution Program, College of Engineering
Texas A&M University

Be an advocate for innovation. Those who remain fearful of AI run the risk of falling behind. By championing new ideas and demonstrating a commitment to staying at the forefront of industry trends, employees can secure their current roles and emerge as indispensable leaders shaping the future of supply chain management.

The rise of AI and automation, such as ChatGPT, offers supply chain professionals a prime opportunity to maximize the associated benefits and advance their careers. They should actively seek out training and learning opportunities to integrate these emerging technologies into their daily operations and, by doing so, they can significantly enhance their performance and productivity while positioning themselves as a strategic leader within their organization.

Continuous upskilling, adapting to evolving trends, and fostering a culture of agility are crucial components to long-term success in supply chain.

–Joe Galvin
Chief Research Officer
Vistage

Leverage both narrow and generative AI to propel supply chain planning from a supportive role to a strategic function. Supply chain professionals are drowning in data, and precious hours are wasted in data collation and searching for answers from dashboards and reports that are quickly outdated.

With the assistance of generative AI, actionable insights will revolutionize how knowledge workers approach decision-making in the supply chain. Managing a supply chain involves a continuous chain of decisions and generative AI will significantly streamline the preparation for meetings by providing support with data that is considerably less effort-intensive, with reduced latency and heightened accuracy.

We’re entering a new era in supply chain management, where speed and precision are not just desired, they’re required. Organizations that embrace these novel concepts will gain a substantial competitive advantage.

Those at the forefront of integrating AI into their supply chain operations will not only navigate the complexities of supply chain management with confidence and strategic agility but will also position themselves as leaders in harnessing the transformative power of artificial intelligence.

–Piet Buyck
SVP Industry Principal
Logility

High-Impact Career Moves

Joe Adamski, Senior Director, ProcureAbility

Learn the broader aspects of a supply chain, and how it fits within the overall corporate strategic framework. Don’t just focus on a single area; someone with deep logistics, procurement, or warehouse expertise is important, but won’t progress as quickly as someone who understands the full spectrum of Plan – Source – Make – Deliver.

Identifying opportunities to get involved in the ideation phase of new projects to drive better decisions on designing for value can be essential in building the right network. Enable your success by learning the broader business skills that will set you above the pack.

Be curious about new innovations; you might be surprised by the opportunities this curiosity offers. Instead of feeling threatened by automation and AI, learn how these technologies work and how they can complement your skillset.

For example, individuals who can troubleshoot and repair automated equipment and operate AI analysis tools are in high demand. Networking with industry peers and colleagues is one of many ways to keep abreast of these new cutting-edge advancements.

–Yanitza Vega-Hughes, PMSM
Director of Human Resources
iGPS Logistics

Show you are a utility player. Not just sticking to what you are good at, but developing new skills will generate growth and advancement. Not being afraid to say “yes” when a new opportunity is offered.

Whether those skills are a stepping stone up or a lateral move, having a full scope of the supply chain and how it operates is an impactful way to advance your career. Through learning new or different skills, you can gain an understanding of the drivers, the customer/supplier, the employees, and the company, thus developing mastery of how the supply chain works as a whole.

–Taylor Rinehart
HR Specialist
Tri-National, Inc.

Develop leadership skills such as effective communication, strategic thinking, and adept problem-solving to inspire teams, navigate challenges, and drive organizational success.

Devote time to understanding best practices for supply chain risk management. Develop a nuanced understanding of the disruptive forces facing global supply chains, the role risk visibility plays in enabling proactive responses, and deep knowledge of risk mitigation strategies that build resilience into the end-to-end supply chain.

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

Continuously invest in one’s skills and knowledge. Ongoing education, certifications, and simply staying up to date on industry trends and best practices is a part of this. Furthermore, networking and building relationships in the industry is crucial as well, as it broadens the horizon and opens up new opportunities.

–Gabriele Langenmayr
Head of Human Resources Americas
DACHSER USA Air & Sea Logistics Inc.

Embrace a mindset of continuous learning, curiosity, and fearlessness. Successful practitioners in the field understand the importance of staying curious and being lifelong learners, constantly seeking new knowledge and insights to improve their practices.

Practitioners also need to try and look beyond their own industry, drawing inspiration from diverse sources and applying innovative solutions to their own environments. Those who make the most progress are fearless in their pursuit of improvement, learning from failures and using setbacks as opportunities for growth. Ultimately, supply chain professionals should not hesitate to ask questions, seek help, and collaborate with others to address challenges and drive positive change in the industry.

–Christine Barnhart
Chief Marketing and Industry Officer
Nulogy

Prioritize substance over flash as you work to understand and embrace new technology. Don’t be distracted by the new technologies of the moment. Instead, pay close attention to the problems they’re supposed to solve and consider their practical, sometimes-imperfect, applications in the real world.

We’ll take the rise of digital twins, for example. In reality, very few organizations will require hyper realistic digital models of warehouse floors or assembly lines. That said, the idea of digital twins might prompt a lagging organization to standardize its data, evaluate existing workflows, or consider changes to its procurement process.

Sometimes, abstractions are sufficient in generating quick insight and faster improvements to supply chain and manufacturing processes.

–Jason Hehman
Vertical Lead for Industry 4.0
TXI

Focus on innovation, collaboration/teamwork, sustainability, and social responsibility. Strategic partnerships—extending from suppliers to customers—and cooperation ignite creativity, enhance problem-solving, and ensure collective achievement in a tightly connected global market. Moreover, dedication to sustainable and ethical operations is vital.

Embracing eco-friendly logistics, ethical sourcing, and fair labor practices demonstrates a profound grasp of the industry’s broader implications. Aligning with the growing demands for corporate responsibility elevates a brand’s reputation and ensures its long-term sustainability.

–Ariella Azogui
Co-Founder
DutchX

Emphasize optimization. I rely on one principle that has guided my career: The only constant is change. A recent report from Amazon Business found that global procurement and supply chain organizations believe the same, as 95% of leaders said they will work to optimize their procurement and supply chain practices in 2024.

The dynamic nature of markets, supplier-principal relationships, and other macro trends will drive the need for supply chain leaders to optimize and adapt faster than ever. The unpredictable influence of technology changes, transformation (which I like to think of as evolution), geopolitical forces, governance, and compliance factors will require leaders to have agility built into their companies’ defined strategies.

Many questions surface as supply chain leaders contemplate future strategies. Are their organization’s current foundations strong and flexible enough to support future change and optimization? Does the optimization require a bit of a teardown and rebuild? How seamlessly can optimization be performed to reach both short-term and long-term goals? Did the organization set the best goals to guide these evolutionary changes?

Leaders who are diligent about building resilience in their supply chain with trusted partners will develop strategies that can carry them through any market fluctuation.

–Jeff Austin
Vice President of Supply Chain Services
Jabil

Most cargo thefts occur near:

• Warehouses and distribution centers
• Unsecured parking lots
• Company truck yards and premises

Sources: Overhaul and CargoNet

Technology

• Identiv’s ID-Pixels tags will now be powered wirelessly by Energous’ PowerBridge technology, enabling accurate sensor measurements throughout the supply chain, including in cold chain logistics. The joint solution aims to deliver more reliable power than disposable batteries and charging cables to Internet of Things sensors deployed across the logistics industry.

• HERE Technologies launched HERE Advanced Traffic Patterns to help improve the planning, routing, and delivery of goods and packages. The solution leverages trillions of data points from onboard sensors, telematics systems, and mobile devices to calculate traffic speed information for commercial vehicles, incorporating variables such as time, day, and vehicle type to help companies improve planning capabilities with predictive ETA windows.

↑ RightHand Robotics introduced the RightPick 4 System, an autonomous robotic piece-picking solution for warehouse order fulfillment, which offers improved picking and grasping techniques. The solution has enhanced AI-based software algorithms, upgraded sensors, and hardware that enables a larger picking range of item SKUs, item handling capacity, and increased system autonomy.

Products

← Smart Vision Lights’ new RHI200-DO Lightgistics light with hidden strobe technology features 64 LEDs in a ring light for uniform lighting at long working distances. The technology helps maximize the abilities of machine vision systems. The light addresses the challenges of high-speed barcode reading and optical character recognition on highly reflective plastic wraps and shipping bags.

• ORBIS, in collaboration with partner Seedbox Solution, unveiled the GEN250 seed box, a container for storing, transporting, and discharging bulk seed. The reusable containers are collapsible and stackable, minimizing storage needs and increasing transportation efficiency.

• The new nestable picking pallet, Retail US5, from Cabka is 100% recyclable and is constructed from recycled plastic. Designed for U.S. plastic pallet solutions, the Retail US5 features a lightweight construction and a low nesting height to maximize space utilization.

Services

• cargo-partner is constructing its third warehouse at its iLogistics Center in Dunajská Streda, Slovakia. The expansion will nearly double storage capacity from the current 27,600 to 50,000 pallet spaces. The new Class A building was designed to optimize energy efficiency and includes 22 loading ramps and two drive-in gates for loading and unloading.

• Delta Cargo launched an ecommerce solution called DeliverDirect in collaboration with SmartKargo. DeliverDirect is a door-to-door delivery service for the U.S. market, offering ecommerce retailers a customizable, direct-to-consumer shipping solution that provides alert management, tracking and reporting, and access to Delta’s domestic network.

↑ Southeastern Freight Lines opened an expanded service center in Charlotte, North Carolina. The new facility consists of 230 dock doors and houses its pickup and delivery operation as well as its breakbulk operation on an interim basis while Southeastern works to redevelop its second facility in Charlotte.

• CJ Logistics America is opening a cold storage warehouse in Gainesville, Georgia, later this year, located adjacent to the future Northeast Georgia Inland Port, providing a direct link to the Port of Savannah. The 270,000-square-foot building, developed by RL Cold, offers a blast freezing system that brings products to desired temperatures in 24 hours or less.

• AIT Worldwide Logistics opened a LEED-certified warehouse in Palatine, Illinois, near Chicago. Designed to handle a variety of shipping needs, the newly constructed, 370,000-square-foot building is equipped with 58 dock doors and provides full-service warehousing, including pick and pack services, short- and long-term storage, and multiple temperature-controlled areas for food logistics and life sciences commodities.

Transportation

↑ China Cargo Airlines launched three Boeing 777 freighter flights a week to Miami from Shanghai Pudong International Airport. The airlines awarded Worldwide Flight Services a three-year contract to handle its cargo, including ecommerce traffic, perishables, seafood, and general cargo.

• Ocean Network Express (ONE) is set to launch a container ship service between Savannah, Georgia, and West India in May 2024. The new offering gives the Georgia Ports Authority 10 services via the Suez Canal, with nine calling on the Indian subcontinent. ONE’s new West India North America service offers a weekly route linking Hazira, Nhava Sheva, and Mundra to Savannah.

• CMA CGM’s first liquefied natural gas-powered container ship now serves West African ports. The 15,000-TEU CMA CGM SCANDOLA sails on CMA CGM’s West Africa Express service connecting West Africa (Tema, Lekki, Abidjan, and Pointe-Noire) directly to China, Southeast Asia, and India.

• ZIM introduced ZIM Pacific Northwest Xpress (ZPX), an independent service that connects Asia, Canada, and the United States via Vancouver Gateway. ZPX commenced operations on January 21 from Cai Mep, Vietnam, with the following rotation: Yantian, Kaohsiung, Xiamen, Ningbo, Shanghai, Vancouver (Deltaport), Pusan, and back to Cai Mep. Service features include rail connectivity covering major Canada and U.S. inland IPI destinations, including East and Central Canada, U.S. Midwest, and Ohio Valley.

• Roadrunner expanded its less-than-truckload services, launching offerings to Canada and Portland as well as adding 135 lanes to its network. Roadrunner’s new lanes include: Dallas and Houston, Texas, to Denver; Nashville and Memphis, Tennessee, to Denver; the Northeastern United States to and from Nashville, Indianapolis, Louisville, and Cincinnati; cities in Florida to Nashville and Memphis; and service to Alaska and Hawaii.

↑ Maersk A/S, an entity under A.P. Moller – Maersk (Maersk), and Hapag-Lloyd signed an agreement for a long-term operational collaboration called Gemini Cooperation, which will start in February 2025, to provide shippers with ocean network reliability and accelerate decarbonization initiatives. The new cooperation includes a fleet pool of around 290 vessels with a combined capacity of 3.4 million TEUs; Maersk will deploy 60% and Hapag-Lloyd 40%.

Make Room for Twins

The popularity of supply chain digital twins is rising. These virtual replicas or simulations of a physical supply chain—created using real-time data and advanced technologies such as the Internet of Things, artificial intelligence, and machine learning—enable organizations to better understand, analyze, predict, and optimize their supply chain processes.

How great is the demand? According to Market.us, the worldwide supply chain digital twin market is projected to reach a value of $8.7 billion by 2033—a compound annual growth rate of 12% during the forecast period from 2024 to 2033.

The increasing complexity of supply chains, the need for greater visibility and control, and the rising demand for predictive analytics in supply chain management is driving the growth in this market, according to the report.

Top Trade Disruptors

While the pandemic is firmly in our rearview mirror, a new batch of disruptions have popped up to challenge the supply chain. The Q1/Q2 2024 Retail Sourcing Report from TradeBeyond outlines the top trade disruptors that are likely to throw a wrench into global sourcing plans and buying decisions in 2024. Here are the key highlights:

• Rate fluctuation: Extreme shipping rate volatility with attacks in the Red Sea have sent shipping rates surging since December, more than doubling the rates on some European lanes and creating substantially longer transit times.
• Looming uncertainty: The shipping crisis has made supply chain disruptions more likely, elevating fears of a return to the bottlenecks, component shortages, and product delays that supply chains endured in recent years.
• Tech spend coming: The pace of digitalization continues to accelerate in retail supply chains, with more than 90% of supply chain managers saying their companies are actively engaged in digital transformation. And 46% of supply chain executives anticipate that AI, cognitive computing, and cloud applications will be their greatest areas of investment in digital operations over the next three years.
• Manufacturing slump: The most recent GEP Global Supply Chain Volatility Index warned of continued downturn in global manufacturing through at least the first quarter of 2024 amid softened demand, especially in Europe.

Mega Money for Intermodal Projects

In a win for intermodal infrastructure, the U.S. Department of Transportation (USDOT) recently selected 37 projects to receive funding through the Bipartisan Infrastructure Law’s Mega and Infrastructure for Rebuilding America (INFRA) grant programs. Several of the projects will boost intermodal infrastructure across the country.

The Mega Program, also known as the National Infrastructure Project Assistance program, funds large, complex projects that are difficult to fund by other means and likely to generate national or regional economic, mobility, or safety benefits. Congress established the program in 2021 through the Bipartisan Infrastructure Law and dedicated $5 billion to the program over five years. The most recent awards were the second round of funding, worth roughly $2 billion.

INFRA is a competitive grant program that provides funding for multimodal freight and highway projects of national or regional significance to improve the safety, efficiency, and reliability of freight movement in and across rural and urban areas. The most recent annual program funding amount is $3.1 billion and the annual award amount is $1.5 billion.

Intermodal projects receiving grants in this round of Mega and INFRA funding include:

• America’s Green Gateway: Pier B Rail Program Buildout, Long Beach, Calif. The project will complete the Pier B On-Dock Rail support facility program by significantly enhancing container-on-rail service to and from the ports of Long Beach and Los Angeles.
• St. Lucie River Railroad Bridge Replacement Project, City of Stuart, Fla. The project will replace the existing 100-year-old St. Lucie River Railroad Bridge with a new double-track structure. By diverting freight traffic to rail, the project will increase safety for marine traffic, decrease the potential for blocked grade crossings and vehicle collisions, and shift single-occupancy vehicles to passenger rail travel.
• East River Berth Replacement Project, Garden City, Ga. The project will replace a port berth and two vessel berths at Georgia Ports Authority’s Port of Brunswick’s East River Terminal and will also reduce greenhouse gas emissions by supporting a modal shift from truck to rail for transporting commodities to the Port of Brunswick.
• Louisiana International Terminal Project, St. Bernard Parish, La. The project will construct a new container terminal on the Gulf Coast for the Port of New Orleans that is not air-draft restricted and can accommodate larger vessels.

Walmart Wings It

The nation’s largest retailer will soon boast the retail sector’s largest drone delivery footprint. Walmart recently unveiled plans to dramatically expand its drone capabilities across the Dallas-Fort Worth metroplex, adding more than 30 municipalities and towns in North Texas.

The expansion will enable the company to reach up to 1.8 million additional households—the most ever by a retailer offering drone delivery in a single market—and cover as much as 75% of the metro area.

Individuals who live within 10 miles of participating stores will be able to order thousands of items, ranging from snacks and beverages to baby wipes and over-the-counter medications, for delivery by drone in 30 minutes or less and potentially in as fast as 10 minutes.

The retail giant is partnering with drone delivery companies Wing and Zipline for the service; both are authorized by the FAA to fly drones beyond the line of sight of operators.

Walmart says it has safely completed more than 20,000 drone deliveries over some two years of test flights.

AI in Transportation: All Talk, No Action?

While artificial intelligence (AI) is one of the most buzzed-about topics within the supply chain sector, AI adoption is lacking severely in the U.S. transportation and logistics (T&L) market, according to new data from HERE Technologies and Amazon Web Services. In a multi-country survey of transportation and logistics professionals in the United States, Germany, and the United Kingdom, HERE found a significant gap in the adoption of basic data analytics.

The survey results underscore the untapped potential of AI—from data analytics supported by machine learning to optimized fleet routing, predictive maintenance, and streamlined processes for strategic decision-making.

Here are the report’s key takeaways:

• Only 50% of T&L professionals across the three countries say that their organizations utilize basic data analytics in their operations. At the same time, 25% of all respondents state their organization leverages AI capabilities.
• Cost (23%) is the leading barrier to tech implementation.
• Potential disruption to existing services (12%) and lack of internal expertise (11%) were the second and third most cited barriers to technology implementation.

Somewhat conversely, survey participants were optimistic about their progress toward supply chain visibility, with 86% reporting notable progress toward supply chain visibility and 18% considering their progress significant. Among modes, 50% indicate truck freight has the highest visibility, while 45% cite ocean freight as the least visible mode of transportation (see chart).

Manufacturers: .ru Prepped Against Cyber Attacks?

The manufacturing sector faced an unprecedented 165% surge in cyber attack attempts last year—many coming from Russian and Chinese actors, according to Armis, an asset intelligence cybersecurity company. Its new report reveals that the industry faces severe safety, production, and critical infrastructure risks if security gaps aren’t urgently addressed.

Key highlights include:

• Global attack attempts more than doubled in 2023, increasing 104%. The manufacturing industry weathered a much higher-than-average rate of attacks at a 165% increase.
• In 2023, manufacturing was one of the top industries exposed to attack from Chinese and Russian actors. Compared to other industries, manufacturing experienced an intensified threat landscape, with .cn and .ru domains contributing to an average of 30% of monthly attack attempts.
• The concerning trend of operational technology (OT) devices accessing the internet highlights further potential vulnerabilities, with around 80% of engineering workstations and 60% of supervisory control and data acquisition (SCADA) servers having internet access over the past year. The vulnerabilities in these devices increase the potential entry points for bad actors.
• Data further highlights a concerning number of exploitable devices owing to usage of end-of-life or end-of-support operating systems that are no longer actively supported or patched for vulnerabilities and security issues by the manufacturer. Additionally, 12% of utilities and 11% of manufacturers are still using legacy operating systems—exacerbating cyber weaknesses.

The FLSA is the federal law that governs crucial aspects of most employment relationships, including minimum wage and working conditions. The FLSA’s applicability turns on whether a worker is considered an employee or an independent contractor, and being able to structure the relationship with certainty is vital to the worker, employer, and the logistics sector as a whole.

Those who decide to operate as an independent contractor make this choice to enjoy autonomy and flexibility. The relationship is typically characterized by freedom to set their own schedule and to generate/risk a profit or loss.

Contrarily, employees typically work according to the employer’s schedule and receive a salary regardless of how the business performs. Each receives different benefits depending on how they choose to order their lives.

The new rule potentially disrupts the ability of workers to choose which economic model to provide services under, as well as making employers revisit long-standing arrangements and consider whether the new classification rules alter the model that operated successfully for many years.

Ripple Effects

The ripple effects of these changes will also impact logistics and the U.S. economy. The marketplace relies heavily on the flexibility and efficiency of independent contractors. Third-party logistics providers, brokers, and motor carriers depend significantly on these workers to meet the demands of their operations. The prospect of reclassifying these vital contributors as employees threatens to disrupt an already fragile marketplace and supply chain.

There is an inherent balancing act between safeguarding workers’ rights, respecting an individual’s freedom to choose their own economic path, and finding a balance that promotes marketplace efficiency. Policymakers, workers, businesses, and labor advocates must collaboratively address the challenges this ongoing debate poses.

For independent contractors, freedom to choose one’s economic destiny, clarity in classification, and clear-cut labor protections are critical components of any solution.

Finding a Resolution

Although the Department of Labor has issued its final ruling, unanswered questions remain: How will the DoL interpret this rule? Will the courts let it stand? While we wait for these questions to be resolved, we must continue to advocate for a resolution of the independent contractor versus employee dilemma. It’s a resolution that requires thoughtful dialogue, legislative action, and perhaps a reevaluation of our employment paradigms.

Compromise can be found, but the solution must be one that ensures the continued prosperity of our industry and supply chain business model.

Some key questions the report answers include:

• Why outsource this function? In addition to cost reduction, outsourcing the freight audit and payment function enables shippers to reduce time spent on tasks like collecting carrier invoices, conducting freight invoice audits, making payments to carriers, and pulling detailed reporting on freight costs and services.

The highly regulated nature of the U.S. transportation market is another factor pushing shippers to  freight audit and payment services. The report shows that shippers are adopting these services to ensure compliance with various regulations.

• How big is the market? The report notes a market value of $696.11 million in 2022 and projects that number to reach $1.85 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.67% from 2024 to 2030.

• What are the market segments? Currently, the market is bifurcated based on organization size, mode, industry verticals, and geography.

• Large organizations make up the largest market share, accounting for 64.48% of the market in 2022, with a market value of $448.87 million. The report projects this number will grow at a CAGR of 13.67% during the forecast period.
• Road freight accounted for the largest market share of 39.16% in 2022, with a market value of $272.59 million. It is projected to grow at the highest CAGR of 14.33% during the forecast period.
• Top industries included in the market are retail, manufacturing, food and beverage, and healthcare. Retail accounted for the largest market share of 31.35% in 2022, with a value of $218.21 million and a CAGR projection of 13.84% during the forecast period.
• Regionally, the market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America accounted for the largest market share of 44.9% in 2022, with a market value of $312.57 million and is projected to grow at a CAGR of 13.77% during the forecast period.

CargoNet recorded 692 cargo thefts in the third quarter of 2023, a 59% increase when compared to the same period in 2022. Still, even with cargo thefts surging, the supply chain field as a whole largely does a good job of preventing theft, says Keith Lewis, vice president of operations for CargoNet at Verisk.

The problem is “that when things go wrong, they go very wrong, and it has a significant impact,” he adds. The chief challenge for companies is taking the necessary steps to prevent theft without slowing the movement of freight significantly and undermining their profits.

Here are some key ways that shippers and others can work to combat cargo theft in the most challenging landscape in years.

1. Understand the new vulnerabilities.

Cargo theft can be divided into two types: straight theft and strategic theft, according to Scott Cornell, transportation segment lead, crime and theft specialist at Travelers.

Straight theft, the most common and traditional form, means physically stealing cargo. Strategic theft is less straightforward and it’s rapidly on the rise, jumping a startling 430% year-over-year in the third quarter of 2023.

“Strategic theft is when thieves use methods such as identity theft, fictitious pickups, and double brokering scams,” Cornell explains. “That’s done partially virtually.

“We’ve seen the largest increases in that category since about halfway through 2022, all through 2023, and we expect it to continue into 2024,” he adds.

Thieves essentially find ways to exploit the systems that have been implemented to make the supply chain faster and more efficient.

“Whether that’s load boards, the use of email, or internet platforms—all those things that have been put in place to help the supply chain move as quickly as demand—are the same things that cargo thieves take advantage of,” Cornell says.

The pressure to move freight faster to keep up with customer expectations can create “an environment where things fall through the cracks,” Cornell says.

“Moving freight at the speed of light, even if we are do a very good job of vetting, creates vulnerability,” Lewis says.

While busy port areas remain the most-targeted areas for thieves, the use of identity theft and other virtual methods means that thieves can steal cargo anywhere, widening the geography of where thefts are occurring to the interior of the United States and other nontraditional cargo theft areas.

“That will be a big shift for the industry going forward,” Cornell says. “How do you deal with that, when most of the resources that have been built over decades around cargo theft are concentrated in those traditional hotspot areas?”

2. Put in place processes, procedures, and culture.

Companies should have strong processes and procedures in place to prevent theft, and maintain diligent training and oversight of those processes to ensure team members do not cut corners.

Cargo theft is often about people failing to follow basic protocols. “Many cargo thefts, especially pilferages, are crimes of opportunity,” notes J.J. Coughlin, chairman of the Southwest Transportation Security Council.

Security needs to be treated as a company-wide point of emphasis—a focus integral to an organization’s culture and to its relationship with its partners and providers. “Everyone should be pulling the rope in the same direction and understanding what you’re trying to do and how you’re trying to do it,” Coughlin says.

Cornell agrees that solid processes and procedures serve as the foundation for cargo theft prevention. For instance, he points to the value of using a “red zone.”

“Cargo thieves will sit in surveillance outside a distribution center and follow loaded trucks as they come out,” Cornell says. “They hope that the driver goes straight to a truck stop to fuel and have a meal before they get back on the road. That gives them an opportunity to steal the tractor and trailer.

“A red zone is about making sure drivers are fueled and rested prior to picking up the freight, so that when they pick up a load, they can travel 200 to 250 miles without making a stop,” he says.

“That won’t eliminate the opportunity for cargo thieves to follow them, but more often than not thieves are looking for the truck that will go 20 to 30 miles,” Cornell says. “You improve your odds.”

As part of their procedures, shippers need to have a firm plan in place in the event of a theft. That includes knowing what resources to access and who to contact immediately for support to work toward recovering the stolen cargo.

“If a theft occurs at 2 a.m. Friday, everybody needs to know what their role is, and they need to be able to execute it quickly because after the first 24 to 48 hours, the chances of recovery drop by 50%,” Cornell says.

3. Leverage tools, data, and intelligence

Tactically, locks and plastic seals are a vital part of securing loads. The simple use of locks—such as high-security rear locks, landing gear locks, air cuff locks and kingpin locks—can have a consequential impact on combating theft.

“Anything you can do to deter a thief for a bit makes it more likely they will go somewhere else,” Lewis says.

Technology also offers an array of ways to help curb cargo theft. That includes visibility tools and GPS-based covert tracking, which can be integrated into the trailer or into the cargo itself.

Technology also can provide alerts when doors have been opened or when a truck is moving when it is not supposed to be.

Carriers, drivers, and others also should be aware of trends in cargo theft so that they are aware of areas where cargo often is stolen and how it’s stolen so that they can avoid possible vulnerabilities.

For instance, CargoNet provides data and intelligence about theft that companies can use to improve security, including noting routes and stops that have proven to be problem areas. If CargoNet puts out Be On the Lookout (BOLO) notices about cargo thefts into a particular area, then carriers and others should be aware of that threat and take precautions accordingly.

“It’s important for companies to ask if they’re getting the right information to their decision-makers so that they can act accordingly,” Lewis says.

4. Vet and verify.

Identity theft is common in the consumer world, but it is also a common method of strategic theft. The best way to prevent it is by vetting carriers thoroughly.

Thieves will steal the identity of a legitimate trucking company then go to a load board and solicit a load that appeals to them.

“In that scenario, freight brokers have to be good at vetting that carrier and realizing that it is not actually ABC Trucking, even though it’s pretending to be,” Cornell says.

That means learning to spot the red flags that indicate identity theft has taken place and putting in place measures that prevent thieves from accessing the screening process in the first place.

In the case of a so-called fictitious pickup, a freight broker may have done everything correctly, including properly vetting a legitimate carrier. However, cargo thieves will show up ahead of the scheduled pickup, pretend to be the appropriate carrier, and then be allowed to take the cargo erroneously.

“It is important for there to be open lines of communication and good processes and procedures in place with that shipper to verify that the carrier and driver that they say is there to pick up the load is the carrier who that load is supposed to be released and assigned to,” Cornell says. “That’s the key to avoiding a fictitious pickup.”

Shippers sometimes assume that the broker they hired has done due diligence on any carrier that they use, but that is not always the case. Instead, shippers should make their security requirements clear to anyone they partner with and ensure that partners are contractually liable if they fail to follow established security procedures.

Shippers who use third-party logistics providers or outsourced transportation services often do not obtain all relevant information from the driver and unit picking up their goods.

“I call this ‘point of pick-up control,’” Coughlin says. “You must capture unit information, license plates, Department of Transportation numbers, markings and pictures on the tractor/trailer, driver license information, and pictures. Then, if the loads go missing, you have something to provide to law enforcement.
“Don’t assume someone has all this information because 90% of the time they don’t,” he cautions.

5. Stay involved.

Getting involved with industry organizations that emphasize cargo security is one way for companies to strengthen their security efforts.

For instance, the Transported Asset Protection Association, a nonprofit organization that develops industry standards for supply chain security, hosts the kind of security-focused webinars, conferences and courses that can be invaluable, Cornell says.

Joining regional security councils such as the Southwest Transportation Security Council also can bring large benefits for organizations as a place to share intelligence and resources.

“Get involved in different organizations so that you can have access to the current intelligence that the industry is providing,” Cornell says. “It’s a great way to be a part of the solution to the cargo theft problem.”

Park It

Parking and safe areas for pit stops are enduring challenges and critical to cargo security.

A lack of available truck parking ranks second on the list of the trucking industry’s top concerns—the highest the issue has ever ranked on the list—finds the American Transportation Research Institute’s 19th annual Top Industry Issues report released in October 2023.

“Secure parking and secure stopping areas are sore spots for drivers,” says J.J. Coughlin, chairman of the Southwest Transportation Security Council. “Truckers work within mandated driving time limitations, and many times they deliver to industrial areas of the city that are not the best parts of town.

“Drivers need to pre-plan their trip and identify where it will be safer to stop, rest, or refresh,” he says.

One resource to help drivers with their search for parking is the Trucker Path app, which provides real-time information from its nearly 1 million driver users at all hours of the day on a variety of driver-related topics, including truck stops and parking availability. Trucker Path also recently partnered with We Realize to allow drivers to use the app to reserve secured parking at certain lots.

“In the past six or seven years, many private parking locations have popped up with reserved parking available, and that’s a viable solution,” notes Chris Oliver, chief marketing officer for Trucker Path. “Truck stops and rest areas are viable as well, but finding them is not always easy. That’s the void that the app looks to fill.”

With parking, it usually is better for drivers to use foresight rather than to improvise, particularly in densely populated areas with highly competitive parking climates where reserving a paid spot might make sense.

“Drivers have a good feel of where they will be at the end of a day or a shift,” Oliver says. “Planning ahead based on that information can be important.”

In addition to finding secure parking spaces, one simple method of reducing thefts in truck parking lots is parking a trailer back-to-back with another trailer, making access to the trailer nearly impossible.

As an alternative, Keith Lewis, vice president of operations for CargoNet at Verisk, recommends that drivers pull straight into parking spots rather than backing into them, ensuring that the trailer doors are exposed and potential thieves do not have cover to access them.