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.

And, today’s supply chain management education programs extend beyond traditional academic boundaries. In addition to undergraduate and graduate degrees, there’s also a wealth of programs tailored for industry practitioners eager to hone their strategic skills in the rapidly evolving supply chain landscape.

Frequently run or taught by renowned faculty, these courses seek to deliver a practical, real-world perspective, equipping students aiming for supply chain careers or professionals seeking advancement opportunities with the tools to thrive.

Here’s a roundup of some of the top programs to consider, whether you’re looking to major in supply chain at the undergraduate level, obtain an MBA with a supply chain concentration, or find the right executive education or certificate programs to further your career.

Massachusetts Institute of Technology (MIT)

Ranked as the world’s top university by the QS World University Rankings for 12 years in a row, MIT maintains a stellar reputation for excellence across all disciplines. The university’s supply chain offerings include programs through its Department of Civil and Environmental Engineering’s Interdepartmental Program in Transportation. Also available is a rigorous, 10-month, on-campus master’s degree program in supply chain management. 

“Our students focus on real challenges and real companies,” explains Mary Jesus Saenz, the Director of Digital Supply Chain Transformation at MIT, who notes that all MIT supply chain faculty members conduct applied research. “As a result, we are teaching about the latest trends in the industry, like the digital transformation of the supply chain. By maintaining close ties to global companies, we provide valuable experiential learning to our students.”

University of Pennsylvania – Wharton School

Supply chain practitioners looking to add to their understanding of global supply chains are a good fit for the Wharton School’s Executive Education offering, The Global Supply Chain Management Program. Designed to provide fresh insights on the rapidly changing supply chain ecosystem and help students translate those insights into action, the six-week online program tackles topics including global supply chain risk, managing a socially and economically responsible global supply chain, managing global sourcing, optimizing supply chain roles and responsibilities, and digital trends in global supply chain management.

Participants will learn how supply chains have responded to global stresses and develop an action plan to reimagine the current global supply chain based on identified opportunities for improvement. Wharton faculty members provide expert insights throughout the course, helping participants gain an understanding of the frameworks, skills, and capabilities required to coordinate and integrate global logistics.

Northwestern University – Kellogg School of Management

The Supply Chain Management program is part of the Operations & Technology curriculum. This focused program follows a proven, interdisciplinary approach incorporating management, strategy, marketing, and decision sciences to help students design and manage supply chains.

Guided by senior Kellogg faculty experts, participants explore state-of-the-art models and solutions to real-world challenges of managing facilities, logistics, inventories, transportation, information, outsourcing, and complex networks. Students will develop new skills for integrating a company’s supply chain into a coordinated system, identifying supply chain risks, and designing mitigation strategies.

Michigan State University – Eli Board College of Business

The faculty in the Department of Supply Chain Management (SCM) at Michigan are global industry leaders and according to the university, are considered the voice of the SCM field. The intent is to equip graduates with a competitive edge. Through an integrative educational approach, the university prepares students for the next era of supply chain management and careers in areas including procurement, manufacturing, inventory management, warehousing, logistics, and transportation.

Arizona State University – W. P. Carey School of Business

Arizona State University is currently promoting a certificate program designed for working professionals with some knowledge of supply chain management. The course is offered 100% online and is part of the W. P. Carey Certificate in Foundations of Supply Chain Management.

Students of the operations and management survey course will be exposed to many issues, problems, and decision tools that pertain to effective and efficient internal and external flow of materials and requisite knowledge. The program addresses many topics from contemporary courses in production/operations management, purchasing management, logistics management, and sustainability. As the course progresses, students see significant linkages among those four knowledge areas and between these and other related areas.

Ohio State’s Fisher College of Business

The online Master of Supply Chain Management (MSCM) degree at the Ohio State University Fisher College of Business is designed to build and refine valuable supply chain skills through a rigorous curriculum that combines online coursework with hands-on learning experience. The program culminates in a capstone project that addresses a real business challenge and delivers tangible results to a student’s current employer of an assigned organization.

Carnegie Mellon University Tepper School of Business

Carnegie’s supply chain management course explores how firms can make better supply chain management strategic and tactical choices. The course includes the following units: inventory planning (both single-stage and multiple-stage), coordination, the inventory-order interface, and network design.

Throughout, the course of study illustrates mathematical analysis and qualitative principles applied to real SCM challenges. The course is intended to provide both strategic insights and tactical knowledge needed by supply chain consultants and managers. According to the university, the program is based on rigor and relevance.

Georgia Institute of Technology – Scheller School of Business

More than 7,000 supply chain and logistics professionals choose Georgia Tech Professional Education (GTPE) to learn modern supply chain best practices. According to Georgia Tech, students learn through expert instruction and hands-on simulations. Upon completion of the program, students should be prepared to make a difference in their roles, transforming the organizations where they work and their careers. The Georgia Tech program provides comprehensive certification options. With multiple disciplines and eight certificates, participants are equipped to advance their careers.

Professionals gain a credential that provides a competitive advantage in their careers and for the companies they represent. Georgia Tech instructors provide real-world training and experience to equip students with the skills needed to succeed.

Purdue University – Krannert School of Management

Purdue University offers a transformative education as undergraduates study supply chain and operations and learn from the same faculty who teach in the school’s highly ranked master’s program in Global Supply Chain Management in addition to partnering with corporations to explore forecasting, inventory management, logistics, and financial analysis as it is practiced in real-world situations.

Practitioners can continue their professional development by participating in the Purdue Operations and Supply Chain Organization. The purpose of the organization is to provide members with the means for professional and social development, which explores the many facets involved in operations management and other areas of the supply chain.

Members will gain a better understanding of what it takes to work in the supply chain industry and the tools and skills involved. They will also learn how to effectively network with companies to cultivate career opportunities for the future. The club is not exclusive to supply chain majors. All majors are welcome.

University of Tennessee at Knoxville – Haslam College of Business

The University of Tennessee at Knoxville is ranked highly among supply chain graduate programs in the United States. Some of the advantages offered are flexibility, industry access, career readiness, and applied learning. The program provides working professionals with the flexibility to earn a master’s degree at a full or part-time pace. Students can connect, collaborate, and engage with supply chain practitioners, researchers, and thought leaders through the Global Supply Chain Institute. The school focuses on a relevant curriculum that provides practical knowledge that can immediately be used on the job. Case studies, simulations, and projects equip enrollees with critical thinking and process management skills to advance in the supply chain industry.

University of Maryland College Park – Robert H. Smith School of Business

The University of Maryland’s Master of Science in Supply Chain Management (MSSCM) program gives students the knowledge they need to manage the flow of goods, services, and financial resources from the beginning to the end phases of a supply chain. The program is designed for methodical problem-solvers with strong communication skills who want to successfully negotiate with business partners.

The university’s MSSCM program teaches the fundamentals of the field while immersing students in more specialized technical skills and credentials, including contract negotiations. Students can earn valuable certifications such as Lean Six Sigma Yellow Belt and APICS certifications. The program also allows students to use cutting-edge tools, including blockchain technology and SAS, to identify trends, forecast consumer behavior, and improve operations.

The University of Wisconsin – Madison – School of Business

In 2021, U.S. News & World Report ranked the University of Wisconsin as number 18 in the United States for undergraduate supply chain and logistics programs. The curriculum includes sourcing, procurement, logistics, marketing channels, and supply chain technology. Students will learn to assess the financial and operational implications of supply chain strategies. They will also make the correlation between supply chain strategies and business decisions. The program helps enrollees develop analytical thinking skills and the ability to evaluate opportunities and risks.

Rutgers University

The Supply Chain Management Department at Rutgers aims to disseminate knowledge in areas such as procurement and global sourcing, logistics optimization, distribution and supply chain innovation, labor relations and contract management, supply chain legal environments, project management, business process design and improvement, quality management, risk analysis, and supply chain security as well as supply chain finance, supply chain analytics, and supply chain technologies.

According to Rudolf Leuschner, Associate Professor at Rutgers Business School, “The Department of Supply Chain Management at Rutgers Business School has only been in existence for a little over a decade, yet it has grown to the second largest in the United States.”

The department offers a high-quality multidisciplinary education that balances theory and practice in supply chain management to prepare a new generation of business graduates to meet future challenges.

He noted, “Our perspective regarding supply chain management is that we need to educate our students on all aspects of the end-to-end supply chain. This includes the flow of products/services, the flow of information, as well as the flow of finances.”

The University of North Carolina at Chapel Hill – Kenan-Flagler Business School

According to the university, increases in product variety and customization in the past few years have posed more challenges for firms in terms of delivering products to customers faster and more efficiently. With the prevalence of internet usage for business, electronic business transformations are occurring in every business. One of the fundamental enablers of electronic commerce is effective supply chain management. Therefore, supply chain management has become the focus of attention of senior management in the industry today.

The University of North Carolina supply chain program is divided into six modules: inventory and information, distribution and transportation, global operations, supplier management, management of product variety, and electronic supply chains.

Several new concepts have been included in the program, including prognostic supply chains, build-to-order, collaborative forecasting, delayed differentiation, cross-docking, global outsourcing, and efficient consumer response. At the end of the course, students will have the tools and metrics to evaluate a current supply chain and recommend design changes to supply chain processes.

Many Options and Approaches with Common Themes

Across the United States, there is a wide range of cutting-edge supply chain management educational programs, from undergraduate courses that begin with the basics to more advanced graduate programs and certification programs designed for supply chain practitioners. Regardless of each unique program, common trends emerge:

• The combination of academic learning with real-world use cases.
• Faculty members who have become thought leaders, not for their teaching skills alone, but for their achievements in supply chain management.
• Programs that challenge students to address current issues and provide the necessary skills to be successful in a rapidly changing world and the supply chains that support commerce across the globe.
• For more information, visit any university website or organizations like the Council of Supply Chain Management (CSCMP) that offer tracks for students as part of their conferences. 

Skill Gaps that Students Must Master Before Entering the Workforce

• While supply chain programs across the United States are teaching academic skills that will be needed as graduates enter the workforce and stay current with changes in supply chain management, there are some skills that seem to be lagging, especially in the wake of COVID and virtual learning.
• Chris Norek, an Affiliated Faculty member in supply chain management at Penn State and a graduate of the program, commented, “What is missing are the soft skills. Many students do not know how to network or form relationships, which are critical in all professions, but especially in supply chain management.”
• He also noted that after years of attending classes virtually, some students may not understand the expectations of corporations for professional behavior. “You can’t work in your pajamas on your sofa when starting a career in supply chain management.” So, in addition to staying abreast of the latest supply chain trends, Penn State also focuses on the basics of communication and professionalism.
• At Auburn University, Brian Gibson, Executive Director of the Center for Supply Chain Innovation, and Wilson Faculty Professor, commented about the ever-expanding breadth of topics that must be included in today’s supply chain education programs. He said, “Students must develop analytical decision-making skills, problem-solving, and process improvement.”
• He noted, “While many students use social media constantly, they need to become proficient in the use of business-focused technology, like Excel, data visualization tools, TMS, or ERP systems, which are now used by many supply chain professionals.”
• He adds that one of the biggest skill gaps, and one that Auburn is striving to fill, is the ability to view data and know what it means and how to incorporate it into a real-world supply chain network.

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.”

Here are four sets of rules and regulations likely to make some of the biggest impact on supply chains in 2024.

1. Uyghur Forced Labor Prevention Act

Under the Uyghur Forced Labor Prevention Act (UFLPA), which U.S. Customs and Border Protection (CBP) started to enforce in 2022, companies may not import into the United States any products with content made by forced labor in China’s Xinjiang province, or products sourced from companies with links to forced labor there.

While the UFLPA is about two years old, CBP keeps expanding its list of companies associated with forced labor, and it keeps sharpening its focus on certain products.

“Going into 2024, I see more fixation on the different sectors within electronics,” says Jamie Wallisch, regulatory and sustainability expert at Assent, an Ottawa-based global firm that helps manufacturers use data to comply with supply chain regulations.

When a company imports a product with materials that CBP considers high risk, the importer must prove that the product doesn’t involve forced labor.

“It’s called rebuttable presumption; it’s like guilty until proven innocent,” says Jerry Peck, vice president of product strategy at QAD, a supply chain solutions provider based in California.

High-risk products include: items that contain certain industrial metals; clothing and apparel; industrial and consumer electronics; automotive parts; and construction and building materials, among others, according to a document published by QAD. And just because a supplier isn’t based in Xiangjiang, or anywhere at all in China, doesn’t mean the import is safe.

“Transshipments come out of China, and go into Malaysia, Thailand, and other countries where they produce the finished goods,” says Peck. Shipments from those countries could also draw scrutiny.

If CBP detains a shipment and the importer can’t prove that it complies with the UFLPA, the government can seize the goods. Even if CBP ultimately clears the import, a shipper that can’t make its case quickly will suffer.

“It’s costly for companies, every single day, to hold their goods until they’re able to provide that evidence,” Wallisch says.

A company needs to lay the groundwork for UFLPA compliance long before goods go on the water.

“First, become educated on what the forced labor requirements are,” suggests Peck. “Then include those as part of your corporate ESG [environmental, social, and corporate governance] program.”

Next, analyze overseas suppliers and their products to determine which ones might pose a risk under UFLPA. When you identify such a product, you need to trace it back to its raw materials, gathering proof that there’s no forced labor in the supply chain.

“You have to assume that your shipment will be selected for detention and have that rebuttable evidence prepared in advance of the importation,” Peck says.

Some of the evidence may come from publicly-available sources such as news articles, reports from non-governmental organizations, and corporate tax records. A shipper should also press suppliers for information: “How are they dealing with concepts of forced labor? What is their process for validating or onboarding their tier one and tier two suppliers?” Peck says.

Assent monitors publicly-available information on behalf of customers, and it administers a survey called the Slavery and Trafficking Risk Template to gather information from vendors.

QAD, through its supplier relationship management solution, also helps importers administer questionnaires. “You have to vet your suppliers and their supply chain—everyone who’s touching those goods,” Peck says.

2. European Union Deforestation Regulation

To facilitate compliance with the EUDR, Source Intelligence offers software that identifies risks to ensure suppliers, parts, and products meet core compliance obligations and uncovers possible exposure to suppliers engaged in human rights violations.

Manufacturers, distributors, and retailers that operate in the European Union will soon have to prove that their products aren’t complicit in stripping the world of trees. The European Union Deforestation Regulation (EUDR) takes effect at the end of 2024 for large companies and in June 2025 for small and mid-sized ones.

The EUDR covers seven commodities—timber, beef, palm oil, soy, coffee, cocoa, and rubber—plus certain products derived from those commodities, such as leather, chocolate, and furniture.

Any company that sells a product covered by the regulation will need to: gather information on that product; assess the risk that it has contributed to deforestation; take steps to mitigate that risk; and place a statement about these efforts in an information system developed by the European Union.

The information a company collects must first show that the commodity was sourced legally, and that it doesn’t involve any human rights violations.

“The second part is to obtain geolocations for where your commodity was grown or harvested,” says Charles Getter, sustainability consultant at Source Intelligence, a San Diego-based firm whose software and services help supply chains comply with government regulations. “You need to be certain that that particular plot of land had not been subject to deforestation.”

Responsibility to comply with the EUDR runs up and down the supply chain. But, luckily, the law doesn’t force each trading partner to perform due diligence from scratch if another supplier has already completed that function.

For example, a supermarket chain whose products include thousands of packaged foods made with soy can check to see if food processors or distributors have already performed due diligence on those products. “If so, you can just quote the reference number associated with that statement,” Getter says.

To prepare for the EUDR, first determine whether you already use a due diligence management system to comply with other government rules, such as the EU Timber Regulation. If you don’t have such a system, start planning to implement one, and start gathering data to populate the system. “You might discover that you don’t exactly know where a lot of your products are coming from, or the legality around your products,” Getter says.

In addition, study the EUDR, particularly Annex I of the regulation, which lists the Harmonized Tariff Schedule (HTS) code of all commodities the law covers.

It’s also important to pinpoint exactly where products were produced—where the soybeans were grown, for example, or the cattle grazed. Source Intelligence uses these geolocations, plus high-resolution satellite imagery provided by the EU, to look for signs of deforestation.

“We can check for conversion of forest to agricultural land by applying designations to satellite imagery and mapping land use,” Getter says.

Thanks to its automated processes, Source Intelligence can quickly conduct due diligence and risk assessment for products that originate in hundreds of locations. “We can check commodities and the legality around them, and get almost instant verdicts on whether or not deforestation was detected on that plot.”

3. Drug Supply Chain Security Act

The final phase of the Drug Supply Chain Security Act stipulates that pharmaceutical products in the United States must be electronically traceable at all times in the future, not only at batch level but also at package level. (Photo: ©Arvato)

Since 2013, the Drug Supply Chain Security Act (DSCA) has required all parties from manufacturers to pharmacists to track and trace prescription drugs and certain prescription medical devices throughout the entire supply chain.

Currently, companies can use paper-based systems and capture data on products at the lot level. But starting in November 2024, they will need to use electronic systems to collect, store, and share their data, and each product will need to carry a unique serial number at the lowest unit of sale.

Congress designed the DSCA to prevent drug counterfeiting and theft and to make it easier to recall drugs when necessary.

“It allows the supply chain to have visibility of a drug as it moves throughout the supply chain,” says Andre Caprio, director of business development, pharmaceutical and health care at Covectra, a company in Westborough, Massachusetts that provides serialization, tracking, and tracing solutions.

When the new requirements take effect, each case, vial, or other sellable unit will carry a two-dimensional barcode with data such as the product’s name and dosage, a lot number, expiration date, and a unique serial number.

Each entity in the supply chain must capture that data and store it for at least six years. Say, for example, that manufacturer Pfizer ships a product to a distributor. “Pfizer sends an electronic file that says, ‘I’m shipping 10 units of this particular product. Here are the serial numbers,” Caprio says. Receiving the product and data, the distributor verifies that they match.

“As they push that product downstream, they need to send the same information to the downstream partner, which needs to receive and store that data as well,” he adds.

Most companies in the drug supply chain are still working to comply with the new requirements, Caprio says. One key step is to implement a DSCSA compliance technology solution from Covectra or another provider. The company also needs to collaborate with its suppliers and customers, creating links that will allow them to share data.

Even before choosing a solution, a company should reach out to the Healthcare Distribution Alliance (HDA), an industry organization that includes panels for pharmacies as well as distributors. “The HDA is the best neutral resource for a company to get insight on DSCSA,” says Caprio. Companies may also get valuable advice from peer organizations.

4. SEC Climate Disclosure

Since March 2022, the U.S. Securities and Exchange Commission (SEC) has been preparing to release a new set of rules that will require publicly traded companies to report how they are managing their climate risk, and also report on their greenhouse gas emissions. While the plan could face further delay, the SEC expects to release the new rules in April 2024.

Once that happens, companies will have between one and three years to comply, depending on what’s known as their “filer status” at the SEC, says Deon Glaser, senior vice president of sustainability, social impact and ESG at The Uplift Agency, a social impact and sustainability services firm based in Detroit.

The main point of the rules is to give investors information they can use to assess, for example, how climate-driven events such as floods or wildfires might affect a company’s operations, or how much carbon the company releases through its activities.

“Investors have demanded that companies report this information,” says Mark Mellen, industry principal, ESG at Workiva, a company in Ames, Iowa that provides a cloud-based compliance reporting platform. “They want the same caliber of disclosure from organizations that they see for financial statements.”

The proposed rule divides greenhouse gas emissions into three categories:

• Scope 1: Direct emissions, such as the carbon released in a manufacturing process.
• Scope 2: Indirect emissions from purchased services such as electricity, heat, and cooling.
• Scope 3: All other emissions linked to the company’s activities, including its supply chain.

It’s not yet clear whether the SEC will include Scope 3 in the final rules. If it does, then companies will have to take a hard look at their supply chains to estimate how components, materials, or finished goods they buy contribute to emissions, both when these items are made and when they’re transported.

Just like companies affected by the UFLPA or the EUDR, companies may need to gather information from several tiers’ worth of suppliers. Fortunately, those suppliers—if they are publicly-traded in the United States—will be doing their own research. “They need to follow the same process that you are with them, with their own suppliers,” Glaser says.

To get ready for compliance, companies should first set up a governance structure. “Get the right teams together within the organization,” says Mellen. Many companies have already created such structures to comply with other sets of rules and regulations, such as those focused on conflict minerals.

Workiva offers technology to support this kind of cross-functional collaboration, helping teams assemble data and create reports, Mellen says.

Many companies already calculate their climate risk and emissions so they can comply with rules from other jurisdictions, such as California or the European Union. But those who haven’t made that move should start right away.

The first step is to study how the SEC’s rules, and other climate disclosure rules, apply to the company’s situation. Then figure out which requirements the company is not already equipped to meet, and map out how to get into compliance. “We do that all the time with our clients, to help them understand what their existing capabilities are and where they will need us to help—what gaps to fill.”

Gateway to Delays

Thousands of Porsche, Bentley, and Audi finished vehicles were reportedly impounded at several U.S. ports in mid-February 2024 due to allegations that the vehicles were manufactured using Chinese subcomponents called gateways that breach U.S. anti-forced labor laws under the Uyghur Forced Labor Prevention Act (UFLPA).

As automakers struggle to find parts that are in compliance with UFLPA, they face backlogs that will likely extend the current expected delivery delays, putting revenue and reputation at risk.

Jena Santoro, senior manager of intelligence solutions at Everstream Analytics, which has been tracking this situation, shares some key points:

1,000 Porsche sports cars and SUVs, several hundred Bentleys, and several thousand Audis were impacted.

• A vehicle gateway is a crucial component in modern automotive manufacturing as it facilitates communication and data exchange between different networks or systems within the vehicle. Without it, a vehicle’s electronic control units operate independently and much less effectively. More importantly, gateways also fortify against cybersecurity issues, and are critical in the development of autonomous vehicles that rely on advanced data exchange and safety protocols.

Though the vehicle manufacturers are now working diligently to replace the parts with those that are in compliance with U.S. laws, delivery delays to dealerships, and therefore to customers, are expected at least until the end of March.

Depending on the complexity of the vehicle concerned, the part can be replaced within between 30 minutes to several hours. The issue, however, is identifying alternate sources of reliable product that will not be found in violation of the UFLPA, and procuring them quickly.

Luckily, the landscape for global automotive central gateway manufacturing is highly competitive and not as centralized regionally like some other automotive components, such as semiconductors.

In this case, the supplier found in violation of forced labor was farther down the sub-tier automotive supply chain. As such, it will take time to verify that alternate product suppliers do not have the same vulnerabilities in their extended networks. As seized vehicles mount at U.S. ports of entry, automakers will be faced with backlogs that will likely extend the current expected delivery delays.

One consensus is clear: The holiday selling season is getting longer. In 2023, consumers spent $109.3 billion online between November 1 and Cyber Monday on November 27—a 7.3% increase from 2022, Adobe Analytics reports.

Spending on Cyber Monday itself spiked as well, jumping 9.6% to $12.4 billion, according to the report.

Why the early start? Rather than forking over expedited shipping fees or risking out-of-stock issues, “consumers started their shopping with Black Friday, Cyber Monday, or even earlier,” says Ann Marie Jonkman, senior director, global industry strategy for logistics services with Blue Yonder.

The longer season isn’t the only important takeaway from the most recent holiday sales period. Here’s a look at some of the other trends:

Continued strength in omnichannel retailing. Online and other non-store sales such as social commerce helped drive overall holiday sales growth in 2023, which jumped 8.2% to $276.8 billion, according to U.S. Census Bureau data, reported by the National Retail Federation (see chart). Social commerce—in which the shopping experience occurs on social media sites such as Facebook and Instagram—more than doubled between 2020 and 2023, hitting $56.2 billion, or about 4.7% of total retail sales, according to McKinsey.

Consumers are continuing in-store shopping as well, says Tom Wicky, co-founder and chief executive officer with MyFBAPrep, which provides logistics and other services to ecommerce retailers. Retailers and their suppliers need to invest in all the channels their customers are using.

Disruptions are likely to continue. The supply chain upheavals that have occurred over the past few years will continue to impact holiday preparations for the 2024 peak season. “We are living in a ‘not if, but when’ time,” says Brian Bourke, global chief commercial officer with SEKO Logistics.

For instance, the targeting of merchant ships in the Red Sea, as well as the drought at the Panama Canal, which is prompting authorities to reduce shipping volumes, will potentially impact air and ocean peak seasons all year long.

Amazon’s policies evolve. During the 2023 holiday season, Amazon doubled its Amazon Prime Day promotions and sales period from five to 10 days. “I expect that to happen again,” says Todd Phillips, vice president of agency operations with Run AMZ, which offers services for companies selling on Amazon.

Amazon also imposed several new fees on its sellers, such as a “low inventory fee,” intended to minimize out-of-stock situations.

Reverse logistics and cybersecurity are critical functions. Retailers anticipated customers returning approximately $148 billion in merchandise for the 2023 holiday season, equating to a return rate of 15.4%, finds a National Retail Federation and Appriss Retailer report. Of this amount, nearly $25 billion in fraudulent returns was expected.

Supply chain organizations that master reverse logistics and can head off fraud can gain a competitive edge.

Consumers remain interested in sustainability. Even during the holidays, a growing number of consumers consider the sustainability and environmental impact of the goods they purchase, says Satyendra Pal, global supply chain lead at digital consultancy Publicis Sapient. That’s especially true for younger consumers. Companies seeking to make the most of the 2024 holiday season would do well to remember this.

Moving Forward

With these takeaways in mind, how can shippers, carriers, and logistics providers prepare for a strong and smooth holiday 2024 season? Here are 11 actions to take.

1. Plan Early and Often

Source: National Retail Federation (NRF) and U.S. Census. Non-seasonally adjusted retail sales.
NRF holiday spending is defined as the months November and December.
NRF’s calculation of retail sales excludes automobile dealers, gasoline stations, and restaurants.

As the holiday season becomes longer and more vulnerable to disruption, starting holiday-focused supply chain planning and preparation earlier “ is a new best practice,” says R.J. Romano, managing director, management consulting, supply chain, with BDO.

For instance, PyroFarms, a company that grows and sells PyroDinos (bioluminescent phytoplankton that can produce light at night and fresh oxygen during the day) has become more strategic in planning for its holiday demand spikes.

Prior to 2023, the company began its holiday planning process in August or September. But in 2023, it began forecasting holiday levels in June, combining 2022 trends and current growth.

“This modeling allows us to order supplies sufficient for a strong holiday season while not extending our inventory beyond what is required,” explains Dean Sauer, PyroFarms’ founder and CEO. The early start also allows for more coordination with suppliers.

Through a different lens, a longer peak season can make operations more manageable. Buyers can try to space out their purchasing, so, for instance, they receive some inventory in early October and the rest in mid-November.

If demand spikes before the later shipments arrive, the company still might not be able to meet it. “Timing is a critical piece,” Romano says.

Scenario planning exercises are another important tool for early planning, where various stakeholders bring together data from across the enterprise to model “what-if” scenarios and identify gaps and risks.

Modeling the impact of an unexpected demand spike, for example, enables leaders to study the results and determine where to add supply chain redundancy to avoid being caught short.

Some companies have begun planning for the holiday peak as early as January, says Steve Sensing, president of supply chain solutions and dedicated transportation with Ryder. Ryder works with customers to prepare continual, rolling 12- or 13-week forecasts throughout the year.

This allows time to assemble resources—whether people or equipment—to assist in the flow of goods.

Given the Red Sea situation, the drought at the Panama Canal, and potential labor action at U.S. East Coast ports, importers and exporters need to prioritize contingency planning, adds Bourke. This includes considering alternate modes and routings, he adds, noting that companies are returning to sea/air and road/air solutions to help keep products moving.

2. Embrace Automation

Boosting efficiency through automation is important any time of the year. During the crush of the holiday season, it can become critical.

Take the example of Burlap & Barrel, a provider of single-origin spices: The company developed proprietary software that its two third-party logistics (3PL) providers can both access. The solution enables Burlap & Barrel to easily shift orders between the 3PL facilities and keep orders shipping out in time for the holidays, explains Ori Zohar, the company’s co-founder and co-CEO.

To accomplish this, Burlap & Barrel modeled its daily fulfillment needs based on its sales forecast and then matched it against each 3PL’s daily capacity. This data allows it to flag the days or weeks when one facility is likely to become backed up. When pending orders at a facility start to exceed daily capacity, the company shifts more orders through the other one.

3. Leverage Visibility

Visibility across an organization’s supply chain is critical for a smooth holiday season. “Visibility is table stakes,” says Jonkman.

Companies must go further yet: The key is using the information that’s now visible to take actions that can improve operations. One example is using the data to reroute goods that are delayed due to congestion or a snowstorm.

“The worst thing is to have great sales and delivery, but then have the product stuck somewhere in transit,” she says.

Combining visibility and collaboration also pays off. For instance, tools that allow operations and customer service teams at both shippers and logistics providers to collaborate can eliminate time-consuming calls and emails.

4. Make Data-Based Decisions

Leveraging technology to make data-driven decisions is another tactic to boost performance. For instance, analytics tools can detect unexpected demand shifts earlier so companies can respond quickly, leading to a nimble and resilient supply chain.

“Putting the proper data collection and analytics tools in place during the non-peak season is an essential first step in preparing for future busy seasons,” says Romano.

In addition, AI and generative AI can help plan for staffing needs and assess what-if situations.

5. Boost Inventory Management

The advent of the peak season should be a call to retailers to clear their distribution centers and stores of obsolete and burdensome inventory.

“Retailers must perform a delicate balancing act between creating space for seasonal products and streamlining operations for maximum efficiency and effectiveness,” explains Jeff Bornino, president, North America with TMX Transform, a supply chain consultancy.

Given the potential for ongoing disruptions, Wicky of MyFBAPrep recommends a sourcing approach that encompasses multiple different suppliers, even ones located in different regions of the same country.

He also suggests shifting from a just-in-time inventory approach to holding enough inventory to avoid going out of stock. That’s particularly true for online sellers, who may jeopardize their rankings on different marketplaces if they experience out-of-stocks.

Depending on how ongoing geopolitical events evolve, companies also may need to book orders earlier than normal to avoid transportation delays in receiving inventory.

6. Communicate With Business Partners

While communication among shippers, carriers, and freight forwarders is essential at all times, it’s becoming even more so currently, given the likelihood of disruptions continuing into the holiday season.

“Companies need to be very clear with how they see their forecasts changing,” Bourke says. He advises companies to provide forecasts early and often to all logistics and transportation providers, so they can safeguard space in their networks.

7. Monitor Amazon Policies

Companies that sell on Amazon need to consider the behemoth’s changing policies as they prepare for the 2024 holidays.

For instance, the fees regarding low inventory and aged inventory are designed to prompt sellers to manage their stock and sell-through effectively. “Amazon prefers items that don’t go out of stock,” says Phillips.

Supply Chain by Amazon—a fully automated set of supply chain services that helps sellers get products from manufacturers to customers across the globe—continues to expand. Among other functions, this service allows companies to ship inventory directly from overseas manufacturing into bulk storage, where it’s automatically pulled into fulfillment centers as needed.

Though “it’s hard to say if this development is good or bad,” notes Phillips, it is worth tracking for holiday 2024.

8. Nail Down Reverse Logistics

While returns can feel like a necessary evil, a smooth returns process can build brand perception and inspire goodwill and further purchases. Best practices include clarifying return policies and including a link to the policy in a website footer, notes Wicky.

Given the costs of handling returns, many retailers are testing different tactics to try to reduce the overall volume of returns. For instance, some are shortening returns periods or forcing shoppers to pay for shipping when returning certain items.

Over the past few years, some retailers have also experimented with ways to rein in returns abuse, including analyzing data to identify fraud and then charging extra to shoppers who abuse return policies.

9. Handle Fraudulent Orders ASAP

Along with sales, fraudulent orders tend to increase during the holidays. At Burlap & Barrel, for instance, the customer support team worked hard to verify potentially fraudulent orders, but didn’t have a great way to do it.

So, the company implemented an automatic order cancellation solution that cancels orders flagged for fraud risks. For example, fraudulent orders often come through one source in rapid succession, such as a new affiliate marketing partner that generates a handful of fraudulent orders. Automatically canceling the fraudulent orders saves time and helps avoid costly chargebacks.

10. Offer Options

Consumers want the ability to make decisions about their orders. This can include multiple delivery options, the ability to consolidate orders and reduce delivery trips, and the ability to pick up orders in a store, among other choices.

“It’s about choices and consumers will shop based on choices and values by that brand,” Jonkman says.

11. Learn to Operate with Uncertainty

Data for 2021–25 are projected.
Source: eMarketer

It’s impossible to predict exactly what holiday season 2024 will look like. Supply chain-dependent companies must be able to operate with some uncertainty.

“They can’t know for sure how demand will rise and fall, especially during busy seasons like the holidays,” Romano says. “But they can—and should—prepare in advance for influxes in demand during busy times.”

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PRODUCT: Honeybee TMS
OVERVIEW: Global freight audit and payment solutions for shippers and 3PLs. Robust TMS and tech-driven consulting and application development.
SOLUTIONS: Global freight audit and payment solutions, TMS, load optimization, parcel management, control tower.

DAT Freight & Analytics

www.dat.com | 800-547-5417

PRODUCTS: DAT One, DAT IQ
OVERVIEW: The largest truckload freight marketplace in North America. Supplies market trends and data insights based on more than 400 million freight matches and a database of $150 billion in annual market transactions to shippers, transportation brokers, carriers, and industry analysts.
SOLUTIONS: Load board, freight factoring, tracking, fuel cards, analytics

Data2Logistics

www.data2logistics.com | 801-287-8444

PRODUCT: Data2InformBI+
OVERVIEW: Supplies data-driven supply chain solutions guided by advanced AI and machine learning technology.
SOLUTIONS: Global freight audit and payment processing, rate card management, real-time tracking and tracing, analytics utilizing the latest AI/machine learning technology, consulting services.

Datex Corporation

www.datexcorp.com | 727-571-4159

PRODUCT: Datex Footprint WMS, powered by Wavelength
OVERVIEW: WMS features for 3PL, distribution, cold storage and pharmaceutical warehousing. Robust billing functionality, along with native integration to critical business and supply chain solutions. Can be tailored for specific warehousing and logistics capabilities.
SOLUTIONS: 3PL solutions, pharma WMS for 3PLs, contract manufacturers and contract packagers, 3PL billing

DDC FPO

www.ddcfpo.com | 303-674-0681

PRODUCTS: Auto-Extraction & Structuring, DDC Sync, IT Outsourcing, RPG Programming
OVERVIEW: Tech solutions that empower digital transformation.
SOLUTIONS: Real-time data extraction, data visibility, essential skills enabling organizations to migrate, maintain, enhance, and innovate their IBM i system without in-house recruitment and retention challenges.

Descartes Systems Group

www.descartes.com | 519-746-8110

OVERVIEW: On-demand, SaaS solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in a collaborative multimodal logistics community. SOLUTIONS: Routing, mobile and telematics; transportation management; global trade intelligence; ecommerce shipping and fulfillment; broker and forwarder enterprise systems.

E2open

www.e2open.com | 866-432-6736

OVERVIEW: Connected supply chain platform powered by artificial intelligence, real-time data from a global network, and other applications to provide a single view encompassing channel, planning, global trade, logistics, and supply.
SOLUTIONS: Collaboration, planning, global trade, logistics, supply.

Emerge

emergemarket.com | 888-736-7710

PRODUCT: Freight Procurement Platform
OVERVIEW: Provides direct capacity and live market conditions for spot and contract freight. A benchmarking feature lets shippers seamlessly adapt to market changes for spot and contract freight.
SOLUTIONS: Contract negotiation and execution, streamlined procurement, spot shipments and immediate bookings for spot freight, market benchmarking, carrier marketplace.

Enveyo

www.enveyo.com | 801-948-0727

PRODUCTS: Insights, Modeling, Cloudroute, Alerting, Audit
OVERVIEW: Cloud-based logistics optimization software that powers insights from planning, execution, tracking, and audit. Helps users deploy data to drive optimized logistics.
SOLUTIONS: 3PL billing and margin management, logistics analytics and business intelligence, parcel transportation management system, delivery experience management, freight audit and recovery.

enVista

envistacorp.com | 317-208-9100

PRODUCT: enCompass
OVERVIEW: SaaS- and cloud-based labor management application that improves operational cost effectiveness through real-time performance management, employee engagement and data analytics. Integrates with any warehouse management system and enables employee engagement and retention.
SOLUTIONS: Labor management.

Ehrhard Partner Group (EPG)

us.epg.com | 817- 755-1880

PRODUCTS: LFS, LYDIA Voice, Timesquare Control Tower, EPG ONE App
OVERVIEW: Supply chain execution software for smarter connected logistics. Tier I functionality includes a warehouse management system, warehouse control system, and automation, resource management, transportation management solution, advanced business intelligence analytics. Voice recognition solution interfaces with multiple WMS and ERP solutions.
SOLUTIONS: Voice picking, warehouse management, transportation management, analytics.

Epicor

www.epicor.com | 215-337-1924

PRODUCTS: Epicor Eclipse, Epicor Prophet 21
OVERVIEW: Business software products for the manufacturing, distribution, retail and services industries. Enterprise resource planning, customer relationship management, supply chain management, and human capital management software for businesses in both SaaS and on-premises deployment models.
SOLUTIONS: ERP, business intelligence, warehouse automation, ecommerce, artificial intelligence.

eWMS

www.ewms.com | 847-475-2710

PRODUCT: eWMS
OVERVIEW: Lightweight, flexible, customizable WMS software solution that can support huge multi-client, multi-facility warehouse operations or smaller single facility warehouse operators.
SOLUTIONS: WMS, inventory management, order management, EDI, full barcoding and labeling.

Extensiv

www.extensiv.com | 1-888-375-2368

PRODUCT: 3PL Warehouse Manager
OVERVIEW: Leverages a network of 1,500+ connected 3PLs and a suite of integrated, cloud-native WMS, OMS, IMS, and integration software to enable companies to fulfill demand anywhere with flexibility and scale.
SOLUTIONS: 3PL warehouse management systems, private warehouse management systems, order management systems, ecommerce integrations management, 4PL network management.

Flowspace

www.flow.space.com | 323-741-1325

OVERVIEW: Software platform and distribution network that powers independent, omnichannel fulfillment for ecommerce and retail merchants. Next-gen fulfillment software, running across a nationwide network of 150+ locations, powers fast, efficient fulfillment for companies selling physical products across digital storefronts, social commerce, and into retail stores.
SOLUTIONS: Network design, order management, inventory management, visibility suite, open platform connectivity.

Fortigo

fortigo.com | 512-372-8884

OVERVIEW: Automates, optimizes, and audits logistics decisions to help enterprises reduce costs, improve customer satisfaction, and increase profitability. Closed-loop solutions fit seamlessly into established supply chain software and help optimize logistics processes.
SOLUTIONS: Transportation management system, freight audit and payment, trade compliance and customs audit, logistics consulting, closed-loop logistics solutions.

Fortna

www.fortna.com | 770-475-0991

PRODUCTS: Fortna WES, OPTISLOT DC, Fortna WCS
OVERVIEW: Automated and intelligent software solutions that optimize performance, address disruption and increase profitability.
SOLUTIONS: Central hub/ last-mile depot, cross docking and returns, ecommerce fulfillment, high-density storage, micro fulfillment, omnichannel fulfillment, packing and shipping, slotting, sortation.

FourKites

fourkites.com | 888-466-6958

PRODUCT: Real-Time Supply Chain Visibility Platform
OVERVIEW: Combines real-time data and machine learning to help digitize end-to-end supply chains.
SOLUTIONS: Multimodal visibility (inbound, TL, LTL, parcel, rail, ocean, air), order visibility, yard management, appointment management, data connector.

Freightgate

freightgate.net | 714-799-2833

PRODUCT: Freightgate Cloud Solutions
OVERVIEW: Platform provides advanced dynamic rating, routing technology, and visibility tools, specifically designed to meet global trade demands.
SOLUTIONS: Contract rate management, dynamic routing quote automation, NetSuite/ERP/TMS integrations, visibility and control solutions.

FreightSmith

freightsmith.net/ims | 720-593-8174

PRODUCTS: Digital inbound solutions
OVERVIEW: SaaS provider of modular supply chain solutions encompassing all receiving activities from driver check-in to driver release for receivers, shippers, drivers, and carriers. Provides visibility of inbound assets and allows full remote management of these assets.
SOLUTIONS: Inbound management system, scheduling software, driver check-in and payment app.

Gather AI

www.gather.ai

OVERVIEW: Autonomous, commodity drones and AI software to automate inventory monitoring for warehouse operators.
SOLUTIONS: Drone-powered warehouse inventory monitoring.

Generix Group

www.generixgroup.com | 855-938-4562

OVERVIEW: SaaS collaborative supply chain solutions that facilitate the exchange of goods and data worldwide. Digital services platform optimizes the management of physical flows, coordinating the entire supply process from production to delivery with WMS, TMS, RMS, and VMI solutions. Integrates logical and financial flows, connecting systems of all supply chain parties.
SOLUTIONS: Supply chain execution and visibility, multi-enterprise collaboration, WMS, EDI, VMI, TMS.

Highway905

www.highway905.com | 908-874-4867

PRODUCTS: Highway 905 Warehouse Management System, Highway 905 Transportation Management System, Highway 905 Shipment Tracking and Alerts System and Highway 905 Shipment Tracking App
OVERVIEW: Supply chain execution solutions provider servicing large, small and mid-sized enterprise clients globally.
SOLUTIONS: Warehouse management system, transportation management system, shipment tracking and alert system, freight pay and audit system, labor management system.

Infor

www.infor.com | 646-336-1700

OVERVIEW: Business cloud software products for companies in industry specific markets. Technology puts the user experience first, leverages data science, and integrates easily into existing systems.
SOLUTIONS: Financials, human capital management, supply chain management, workforce management.

Inmar Post-Purchase Solutions | 800-765-1277

www.inmar.com | 800-765-1277

OVERVIEW: End-to-end returns solution that begins with digital returns initiation and concludes with intelligence-driven dispositioning of returns.
SOLUTIONS: End-to-end returns management; Inmar Returns Network (thousands of drop-off locations across the nation); in-store, self-service returns kiosks; returns liquidation and recommerce, supply chain performance analytics.

Intellect Technologies

www.intellecttech.com | 609-454-3170

PRODUCTS: Intellect eFreight, eWarehouse, eBrokerage, eCustoms, eShip
OVERVIEW: Provides an SaaS, customizable ERP solution for freight forwarders, customs brokers, NVOCCs, BCOs, warehouses, CFS, vessels, and equipment and cargo management. Users can select an all-in-one platform solution or stand-alone modules to meet specific administrative and operational IT requirements. Direct connectivity to carriers, customers, and important 3PL vendors via API/EDI.
SOLUTIONS: TMS, quotations, bookings, warehousing, transport orders.

Intelligent Audit

www.intelligentaudit.com | 201-880-1110

OVERVIEW: Data-driven technology, including machine learning and anomaly detection, provides real-time visibility into shipping data.
SOLUTIONS: Freight audit and recovery, real-time visibility, anomaly detection, business intelligence and analytics, logistics network optimization.

IntelliTrans

www.IntelliTrans.com | 800-603-9175

PRODUCT: IntelliTrans TMS, IntelliTrans YardRunner
OVERVIEW: SaaS-based TMS that provides seamless shipment execution and visibility across rail, truck, barge, and ocean. Enables complete, timely, and accurate data, allowing users to automate business processes, improve customer service, and reduce operational costs.
SOLUTIONS: TMS, global vendor managed inventory.

Jada Management Systems

www.jadaman.com | 503-744-0699

PRODUCT: SCP
OVERVIEW: Software solution for forecasting, demand planning, and vendor managed inventory (VMI).
SOLUTIONS: Forecasting, demand planning, vendor managed inventory, reporting, integration, capacity planning.

John Galt Solutions

johngalt.com | 312-701-9026

PRODUCT: Atlas Planning Platform
OVERVIEW: End-to-end supply chain planning software solution with AI and machine learning for global businesses across industries to automate planning, break down business silos, and gain greater visibility.
SOLUTIONS: End-to-end supply chain planning, demand Planning, S&OP and inventory optimization, AI and machine learning, digital twins.

Kaleris

www.kaleris.com

OVERVIEW: Execution software for shippers with truck yards, industrial rail shippers, ports and terminals, inland depots, carriers, ocean vessels, and repair shops. Turns manual processes into automated workflows. Layers visibility over the top for a complete view of all activities, assets, and their status. Data-as-a-service platform connects trading partners so they can plan effectively and accelerate throughput. save time, money, and effort while accelerating productivity.
SOLUTIONS: Yard management, transportation management, system repair management for railcars and chassis, terminal operating systems for marine ports and inland depots, data-as-a-service platform for execution and visibility.

Kinaxis

www.kinaxis.com | 844-390-0322

PRODUCT: RapidResponse
OVERVIEW: Supply chain orchestration software that provides the agility and predictability needed to navigate volatility and disruption. Combines a concurrency technique with a human-centered approach to AI to empower businesses to manage their end-to-end supply chain network, from multi-year strategic planning through down-to-the-second execution and last-mile delivery.  
SOLUTIONS: Supply chain planning, sales and operations planning, demand planning, supply chain analytics and reporting, inventory management.

Kleinschmidt

www.kleinschmidtinc.com | 847-945-1000

PRODUCTS: B2B integration solutions, FreightLaunch
OVERVIEW: Enables business-to-business messages and solves connectivity problems between supply chain trading partners.
SOLUTIONS: EDI integration, API integration, customs and trade compliance, designing & implementing data solutions

Koerber Supply Chain

www.koerber-supplychain-software.com | 800-328-3271

PRODUCTS: Koerber Supply Chain Software
OVERVIEW: Integrated software and technology solutions that provide planning, control, execution and monitoring functionality for high-performing logistics networks. SOLUTIONS: Warehouse management; robotics/autonomous mobile robots; order management system; freight bill, audit, and pay providers; warehouse modeling and simulation.

LOG-NET

www.LOG-NET.com | 732-758-6800

OVERVIEW: Global order management, supplier management, inventory, visibility, transportation, freight, rate and payment solution that works as a standalone or as a single orchestrating platform to integrate and manage internal and external supply chain partners.
SOLUTIONS: Global multi-modal visibility, global order management, transportation management, freight management, rate management, carbon management.

Logility

www.logility.com | 800-762-5207

PRODUCT: Digital supply chain platform
OVERVIEW: Cloud-based platform for optimized demand, inventory, manufacturing, and supply plans. Leverages generative AI, advanced AI-driven algorithms, and machine learning to help deliver an integrated end-to-end supply chain.
SOLUTIONS: Demand planning, inventory optimization, supply planning, S&OP, network optimization.

Logistical Labs

www.logisticallabs.com | 312-999-9762

PRODUCTS: LoadDex, BidDex, RailDex
OVERVIEW: Suite of analytics products for collecting, analyzing, and deploying big data in the supply chain.
SOLUTIONS: Transportation cost visibility and management, carrier sourcing, pricing, integrations.

Logistics Plus

www.logisticsplus.com | 866-564-7587

OVERVIEW: Customized IT solutions incorporate off-the-shelf and proprietary technologies. Delivers multimodal TMS, order management, procurement, WMS, furniture, fixtures & equipment (FF&E) applications, and more through a cloud-based portal. Combined with BI and AI, these apps also support various global supply chain control towers.
SOLUTIONS: TMS; WMS; order management; business intelligence; furniture, fixtures & equipment (turnkey procurement and design to delivery).

LogistiVIEW

www.logistiview.com | 877-797-8232

PRODUCT: FlowEP warehouse execution system
OVERVIEW: Warehouse execution platform for warehousing and manufacturing operations. Provides tools such as AI-automated work planning, flexible human and machine process orchestration, and workforce performance management to reduce cost and maximize throughput.
SOLUTIONS: Warehouse execution system, manufacturing execution system, labor management system, vision picking and sortation with augmented reality and smart glasses, multi-agent robotic orchestration system.

Logistix Solutions

www.logistixsolutions.com

PRODUCT: Logix
OVERVIEW: On-demand supply chain network design and transportation optimization software solutions powered by AI and machine learning tools.
SOLUTIONS: Distribution network design, service level optimization, sourcing, product flow and inventory optimization, strategic sourcing and capacity planning, site selection, sustainability modeling, future scenario simulation, transportation management and optimization, truckload scheduling.

LOGIWA

www.logiwa.com | 317-731-3203

PRODUCT: LOGIWA Fulfillment Management System
OVERVIEW: Cloud-based, AI-driven fulfillment management system for direct-to-consumer, business-to-business, and 3PL operations. Uses machine learning to optimize operations, introduce AI-directed task delegation and reduce picking locations.
SOLUTIONS: Warehouse management system, fulfillment management system

Made4net

made4net.com | 800-646-1041

PRODUCT: WarehouseExpert WMS
OVERVIEW: Configurable and scalable warehouse management software. End-to-end supply chain execution platform offers integrated warehouse, yard, labor, dynamic routing, proof of delivery. and warehouse automation solutions.
SOLUTIONS: Warehouse management systems, labor management, routing management, last-mile proof of delivery, yard management.

Magaya

magaya.com | 786-845-9150

PRODUCT: Magaya Digital Freight Platform
OVERVIEW: Data-driven logistics software platform that optimizes supply chain operations from origin to destination. Flexible, interoperable, and modular cloud-based solutions streamline processes and improve the customer experience.
SOLUTIONS: Shipping and WMS, customs compliance, rate management, digital freight customer portal, CRM for logistics providers.

MagicLogic

magiclogic.com | 206-274-6248

PRODUCT: Cube-IQ, Cube-IQ Web, BlackBox
OVERVIEW: Load optimization software leverages advanced algorithms to maximize space utilization, reduce shipping costs, and improve operational efficiency.
SOLUTIONS: Load optimization.

Manhattan Associates

www.manh.com | 770-955-7070

OVERVIEW: Cloud and on-premises supply chain and omnichannel commerce technology that unites information across the enterprise, converging front-end sales with back-end supply chain execution.
SOLUTIONS: Omnichannel commerce, supply chain execution, supply chain planning, order management, demand forecasting, inventory allocation, warehouse management, yard management, transportation management.

Mantis

www.mantis.group | 678-784-4015

PRODUCT: Logistics Vision Suite (LVS)
OVERVIEW: Warehouse management systems and logistics software and solutions that can be easily adapted for companies with sophisticated warehousing and distribution operations and automation.
SOLUTIONS: Warehouse management system, billing and cost management, value- added services, advanced slotting, warehouse control tower.

MercuryGate International

mercurygate.com | 919-469-8057

PRODUCT: Smart Transportation
OVERVIEW: Transportation and logistics management solutions for shippers, 3PLs, brokers and carriers. Software-as-a-Service product suite natively supports all transportation modes and segments. Uses artificial intelligence, machine learning, and connected technologies to adapt and automate transportation management functions.
SOLUTIONS: Transportation management, shipment and order visibility, claims management, final mile, global sourcing and compliance.

Modaltrans

modaltrans.com | 209-354-3621

OVERVIEW: TMS company that provides the logistics calendar for real-time shipment scheduling and monitoring.
SOLUTIONS: Full freight management features for supply chain logistics people (inbound or outbound), collaboration platform with vendors and logistics service providers, real-time visibility on all modes, invoice and customs auditing, visualized scheduling-shipment calendar.

NetLogistik

www.netlogistik.com | 262-424-5745

PRODUCTS: Operations 360 Control Tower, Blue Yonder WMS, TMS, LMS OVERVIEW: Control tower solution that monitors what is happening within the supply chain. Strategic advisory and seamless deployments of the Blue Yonder logistics and distribution solutions, as well as other top-of-the-line supply chain technologies.
SOLUTIONS: Control tower, Blue Yonder WMS, Blue Yonder TMS, Blue Yonder labor management services, Blue Yonder Luminate Commerce.

Nexterus

www.nexterus.com | 800-937-8224

PRODUCT: Fusion Center TMS
OVERVIEW: Applies expertise and technology to manage and optimize global supply chains. Fusion Center, a proprietary software, enables shippers to eliminate manual processes and deliver customized reports.
SOLUTIONS: TMS, supply chain network optimization, warehousing on demand.

NorthStar Digital Solutions

northstardigital.solutions | 647-355-4027

PRODUCTS: FR8Focus Mobile
OVERVIEW: Optimized digital solutions for the LTL supply chain. Robotic processing automation and machine learning platforms automate document processing required to manage cross border customs releases, order entry, financial AP invoice matching posting processes and remote document imaging.
SOLUTIONS: Robotic process automation, machine learning intelligent document processing, mobile drivers applications, remote scanning, real-time freight tracking, electronic API, bills of lading integrations, integrated B2B connectivity between third party logistics providers and TMS systems, EDI integrations, blockchain smart contract processing integrated for client web portals.

Nulogx

www.nulogx.com | 1-877-9NULOGX

PRODUCT: TMS-O
OVERVIEW: Hosted solution that supports all of the activities necessary to manage and execute the full lifecycle of the transportation process.
SOLUTIONS: Transportation management and optimization, ERP integration, track and trace, freight bill audit and payment.

Nulogy

nulogy.com | 416-992-8558

PRODUCT: Supplier Collaboration
OVERVIEW: Multi-enterprise collaboration platform that fosters collaboration and enhances connectivity, visibility, and agility between brands and their external supply chain partners.
SOLUTIONS: Supplier collaboration, shop floor solution, data solution, connect solution.

nVision Global

corporate.nvisionglobal.com | (770) 474-4122

PRODUCT: Global freight management solution
OVERVIEW: Full suite of logistics management applications that provide complete supply chain visibility. Business intelligence tools analyze data to help streamline logistics management processes and optimize the supply chain.
SOLUTIONS: Freight audit and payment, transportation management, claims, freight spend analytics.

Optilogic

www.optilogic.com | 734-666-0700

PRODUCT: Cosmic Frog
OVERVIEW: 100% SaaS-based supply chain design solution that enables the entire organization to quickly design future supply chains that balance cost, service, risk, and sustainability.
SOLUTIONS: Greenfield analysis/site selection, supply chain network optimization, cost-to-serve analysis, supply chain risk quantification, Inventory policies/rules management.

Optioryx

www.optioryx.com | (+32) 472 71 51 28

OVERVIEW: Leverages AI to help 3PLs, shippers, retailers and carriers pick, pack, and ship less air in boxes, in trucks, and on pallets. Optimization modules reduce the walking distance in warehouses. A mobile dimensioning app provides accurate dimensional data.
SOLUTIONS: Mobile dimensioning app, picking optimization, cartonization and palletization, truck load building.

Oracle NetSuite

www.netsuite.com | 877-638-7848

OVERVIEW: An integrated system that includes financials/enterprise resource planning, inventory management, HR, professional services automation and omnichannel commerce.
SOLUTIONS: Financial management, inventory management, global business management, enterprise performance management, order management, supply chain management, warehouse management, procurement.

PCS Software

pcssoft.com | 800-474-8241

PRODUCT: TMS for shippers and carriers
OVERVIEW: Comprehensive transportation management system acts as a control center to optimize routes, track shipments in real time, automate invoicing, and gain actionable insights.
SOLUTIONS: Transportation management system with fleet management, route optimization, freight audit and pay, full transportation reporting and analytics.

Princeton TMX

www.princetontmx.com | 800-435-4691

PRODUCT: Princeton TMX
OVERVIEW: Cloud-based, multi-modal transportation management system that fully automates transportation planning and execution. Helps manage transportation networks from order management, route and rate optimization, transportation sourcing and procurement, execution and monitoring, to freight audit and payment and data analytics. Users can manage truckload, LTL, rail and barge seamlessly on one platform.
SOLUTIONS: Transportation management system, optimization, procurement, data management and analytics.

ProvisionAi

www.provisionai.com | 615-791-0865

PRODUCTS: LevelLoad, AutoO2
OVERVIEW: Platform translates the supply chain “plan” into executable missions that smooth deployment, match loads to demand, and respect all supply chain constraints. A 3D load optimization solution fills trucks fuller so fewer trucks are needed.
SOLUTIONS: Replenishment scheduling and planning, 3D load optimization.

Ratelinx

www.RateLinx.com | 920-229-5022

PRODUCT: ShipLinx TMS
OVERVIEW: Enterprise-quality transportation management system for multi-carrier parcel and freight. Plan and execute shipments easier, faster, and smarter. Unlimited integrations, transactions, and carriers across all modes to achieve cost savings.
SOLUTIONS: TMS, freight audit and payment.

Reveel

www.reveelgroup.com | 877-842-9443

PRODUCT: Reveel Shipping Intelligence Platform
OVERVIEW: Shipping intelligence platform that leverages machine learning to provide actionable insights that, once implemented, can make shipping operations more efficient, effective, and less costly, while improving the ability to work with parcel carriers to craft the most optimal agreement.
SOLUTIONS: Parcel shipping analytics, contract management, parcel audit and recovery, finance automation, modeling and simulation.

SAP

www.sap.com | 800-872-1727

PRODUCT: Supply chain logistics management solutions
OVERVIEW: Solutions connect processes, contextualize decisions using AI, collaborate with the supply chain ecosystem to gain visibility into partner capabilities and pivot quickly when things change.
SOLUTIONS: Extended warehouse management, transportation management, yard logistics, business network freight collaboration, business network global track and trace.

ShippersEdge

www.shippersedge.com | 888-237-2465

PRODUCT: ShippersEdge TMS
OVERVIEW: Transportation management that provides first-mile to last-mile solutions across all modes for manufacturers and distributors of all sizes.
SOLUTIONS: TMS, dock scheduler, last-mile delivery, supplier/PO manager, freight bill audit and management.

Slync.io

www.slync.io

PRODUCT: Slync Logistics Orchestration Platform
OVERVIEW: Platform designed to handle large trade volumes and eliminate manual shipping processes. Uses algorithms and large language models to scour data being generated across the supply chain and then unifies it into a workflow applications suite.
SOLUTIONS: Carrier management, ocean booking, inventory management, air freight management.

SMC³

www.smc3.com | 800-845-8090

PRODUCTS: CzarLite, RateWare XL, CarrierConnect XL, Bid$ense, LTL APIs
OVERVIEW: Less than truckload (LTL) and truckload data and solutions provider. Service providers and freight-payment companies use the sophisticated LTL base rates, content, and LTL and truckload bidding and planning tools to help make the best business decisions.

Softeon

www.softeon.com | 1-855-softeon

PRODUCTS: Softeon Warehouse Management System, Warehouse Execution System, Distributed Order Management System
OVERVIEW: Broad suite of supply chain solutions provided on a single, integrated services-based technology platform and focused on optimizing warehouse and fulfillment operations.
SOLUTIONS: Warehouse execution, warehouse management, distributed order management.

SphereWMS

spherewms.com | 818-678-2601

PRODUCT: SphereWMS
OVERVIEW: Cloud-based warehouse management system provides real-time insights and accurate counts through a mobile app.
SOLUTIONS: Warehouse management software

SPS Commerce

www.spscommerce.com | 866-245-8100

PRODUCT: SPS for 3PLs
OVERVIEW: Provides 3PL partners a solution that enables efficient operational capabilities that make it possible to meet the demands and expectations of all channels, customers, and end consumers. Prescribes and establishes a single, intelligent connection enabling the automated exchange of data providing critical information to pack, label and ship orders on time.
SOLUTIONS: Customer onboarding (data automation, order normalization); GS1-128/UCC-128 labels and packing slips; 3PL customer portal for item, order, and shipping information; flexible reporting and enhanced visibility, partner and system integrations.

SymphonyAI

www.symphonyai.com | 972-370-5810

PRODUCTS: Forecasting and Replenishment, Supply Chain Optimization, Warehouse Management, Master Data Management
OVERVIEW: AI-powered supply chain solutions enable better forecasting, collaboration, and decision-making for retailers. Reduces manual intervention, food waste, and inventory and markdowns.
SOLUTIONS: Forecasting and replenishment, supply chain optimization, warehouse management, master data management, store operations and mobility.

Synergy Logistics

www.snapfulfil.com |720-372-1250

PRODUCTS: SnapFulfil, SnapControl
OVERVIEW: A tier 1, cloud-based warehouse management system uses a proprietary and configurable workflow rules engine that can swiftly adapt to meet evolving fulfillment demands. A multi-agent orchestration platform seamlessly orchestrates all warehouse devices and robots.
SOLUTIONS: Warehouse management system, inventory management, multi-agent orchestration.

Tecsys

www.tecsys.com | 800-922-8649

PRODUCT: EliteWMS
OVERVIEW: Serves healthcare, distribution and converging commerce industries. Delivers warehouse management, distribution and transportation management, supply management at point of use, and retail order management, as well as complete financial management and analytics solutions.
SOLUTIONS: WMS, ERP, order management system, transportation management system, POU.

Tive

www.tive.com | 617-631-8483

PRODUCTS: Solo 5G shipment trackers
OVERVIEW: Supply chain and logistics visibility technology. Monitors shipment location and condition in real time. Cloud platform, sensor technology, and 24/7 live monitoring services.
SOLUTIONS: shipment location and conditions tracking, temperature logger for temperature-sensitive shipments, live monitoring services.

ToolsGroup

www.toolsgroup.com

PRODUCTS: SO99+, JustEnough
OVERVIEW: AI-powered retail and supply chain planning suites for retailers, distributors, and manufacturers. Enables demand forecasts, inventory optimization, and service level improvements.
SOLUTIONS: Demand forecasting and planning, Inventory optimization, merchandise financial planning, replenishment, assortment planning, demand sensing, allocation and replenishment, production and capacity planning.

TOPS Software Corporation

topseng.com | 972-739-8677

PRODUCT: Maxload Pro
OVERVIEW: Software optimizes cargo load plans and minimizes freight. Various implementations include server-client, web application, high-volume black box server, and API web service. Can be fully integrated into ERP, WMS, and other solutions.
SOLUTIONS: API web service.

Transervice Integrated Solutions (TIS)

shiptis.com | 844-744-7847

PRODUCT: ShipTIS TMS
OVERVIEW: With a combination of expertise in both logistics and technology, Transervice Integrated Solutions built a proprietary and cloud-based Transportation Management System. This secure platform is EDI and API ready for both our clients and vendors. As a division of Transervice Logistics, we also use this technology to match our client’s freight with backhaul opportunities on our dedicated fleets.
SOLUTIONS: We provide truckload and less-than-truckload service across the United States and Canada, powered by our technology.

Transport Pro

www.transportpro.net | 615-823-1937

PRODUCT: Transport Pro
OVERVIEW: TMS technology connects asset-based trucking companies, freight brokers, and shippers, allowing seamless freight management between all parties. In addition to traditional TMS management, the system leverages AI for automatically entering shipments, automated document management for billing, and corporate reporting. SOLUTIONS: Transportation management system, load planning and management, billing and accounting, paperwork processing, safety and compliance.

TransportGistics

www.TransportGistics.com | 631-567-4100

PRODUCTS: TGI-TMS, RoutingGuides.com, TGI-Bid, TGI-POManagement, TGI-LandedCostRater, InsourceAudit
OVERVIEW: Simple, incremental software solutions for transportation management and logistics functions within the supply chain. Portfolio of solutions, for both small and large companies, designed to improve compliance, reduce transportation costs, and drive intelligent procurement processes.
SOLUTIONS: Vendor compliance and management, transportation management, procurement, rate comparison.

TrueCommerce

truecommerce.com | 888-430-4489

PRODUCTS: EDI platform and global commerce network
OVERVIEW: EDI solutions to make the exchange of order fulfillment more efficient and error-free. Global, integration-agnostic trading network with 180,000+ pre-configured trading partner maps, including major global retailers, distributors, and logistics service providers.
SOLUTIONS: EDI platform, global commerce network, vendor inventory management, electronic invoicing and tax compliance, supplier enablement.

TrusTrace

www.trustrace.com

PRODUCT: TrusTrace Supply Chain Traceability Platform
OVERVIEW: TrusTrace is a traceability and compliance data platform for apparel, footwear and textile brands, enabling them to access verified, granular data on how and where their products have been made. By automatically mapping and collecting evidence on supply chains for each purchase order and shipment, brands can access primary data for their products and supplier networks. This can be used for supply chain due diligence, discovering and managing risk, proving regulatory compliance, and helping suppliers improve social and environmental performance.
SOLUTIONS: Sustainable supplier management, supply chain mapping, purchase order tracing and evidence collection, due diligence and risk management, regulatory compliance”

Two Boxes

www.twoboxes.com | 416-569-9298

PRODUCT: Two Boxes
OVERVIEW: Technology that enables 3PLs and merchants to improve in-warehouse return operations through data, making returns more efficient, intelligent, and profitable.
SOLUTIONS: Reverse logistics technology, returns data, returns visibility, processing times, back-to-stock rates, VAS tracking and billing data.

U.S. Bank

usbank.com | 866-274-5898

PRODUCT: U.S. Bank Freight Payment
OVERVIEW: Through a comprehensive online freight payment solution, organizations can streamline and automate their freight audit and payment processes, enhance working capital, and obtain business intelligence.
SOLUTIONS: Online environment for shippers and carrier collaboration, analytics reporting and Power BI (business intelligence), 100% systemic pre-payment audit, data normalization, API connectivity/integration.

Uber Freight

www.uberfreight.com

OVERVIEW: End-to-end enterprise suite of relational logistics to advance supply chains and move goods. Proprietary AI-optimized network provides data insights. Aligns shippers and carriers through dynamic capacity.
SOLUTIONS: Transportation and shipment management, quote comparisons, flat rate pricing, booking, live tracking.

Wiliot

www.wiliot.com

PRODUCT: Ambient IoT Visibility Platform
OVERVIEW: Platform uses IoT pixels and battery-free Bluetooth smart tags to track in real time the location, temperature, moisture level, and carbon footprint of products or packages.
SOLUTIONS: End-to-end real-time product visibility, regulatory compliance, sustainability management, quality control, privacy and security.

YardView

www.yardview.com | 303-781-3430

PRODUCT: YardView
OVERVIEW: Software features a complete set of yard management tools, features and functionality.
SOLUTIONS: Yard management software, dock scheduling, gate entry and exit control.

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

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.

As 2024 gets underway, leaders at U.S. ports view the concept of eco-friendly port operations as a vital element in nearly every aspect of operational decision-making. In short, sustainability is a primary focus.

“It’s definitely at the top of the list,” says Eric Caris, director of cargo marketing for the Port of Los Angeles, which is at the forefront of national and international sustainability efforts with initiatives such as the world’s first transpacific green shipping corridor connecting Southern California with Shanghai.

Other strategies for the new age in port leadership include increased collaboration among intermodal partners as well as other ports, plus ambitious infrastructure enhancements and greater use of digital tools to provide advanced visibility throughout the supply chain.

Sharing Goals

In addition to the ports’ own sustainability objectives—which are consistent with White House initiatives to achieve climate-resilient supply chain infrastructures and operations—many shippers are likewise motivated to improve sustainability in their operations. The ports, therefore, seek to partner with their customers to bolster individual sustainability efforts.

The move toward sustainability is not without challenges, however, notes Mike Bozza, assistant director of commercial development for the Port of New York and New Jersey. Specifically, it’s difficult to acquire sustainable equipment that operates with zero or low emissions.

One example is battery-operated straddle carriers, which are used for container loading and unloading. Electric straddle carriers require scheduled charges, Bozza notes, causing the equipment to be temporarily out of service, which is not ideal. The technology for sustainable equipment is steadily improving, however.

The Port of New York and New Jersey, as well as other ports, is moving resolutely toward a more sustainable future. “We are working with our terminal operators and we’ve got our own net-zero roadmap,” Bozza says.

The Port Authority’s goals include getting to net zero by 2050 as well as achieving a 50% reduction in greenhouse gas emissions for Scope 1 and Scope 2 emissions between now and 2035. (Scope 1 refers to direct emissions from sources an entity owns or controls while Scope 2 means indirect emissions from purchased electricity, steam, heat, and cooling.)

To accomplish these goals, “We’re doing things like solar installations and investing in electric vehicles for our light-duty and medium-duty fleet,” says Bozza.

The Port Authority of New York and New Jersey has also announced a “green gateway” for goods as part of the agency’s overall commitment to reducing emissions from its own operations as well as its operating partners, including marine terminal operators, oceangoing vessel operators, railroads, and trucking companies.

To date, 89 of the port’s 91 ship-to-shore and rail-mounted gantry cranes are electric, with a mandate for full electrification by 2026.

Through a marine terminal tariff, the agency is phasing out old equipment and requiring terminal operators to move to zero-emission material handling equipment as new models become commercially available.

Partnering for Progress

The Port of Los Angeles (opposite) and the Port of New York and New Jersey (above) have both embraced “green shipping corridors” for goods as a way to reduce carbon emissions.

The Port of Los Angeles continues to provide national and international leadership with its initiatives around green shipping corridors, which the U.S. State Department defines as “maritime routes that showcase low- and zero-emission lifecycle fuels and technologies with the ambition to achieve zero greenhouse gas emissions across all aspects of the corridor in support of sector-wide decarbonization no later than 2050.”

In partnership with the Port of Long Beach, the Port of Los Angeles is working with the Port of Shanghai and the C40 Cities global network of mayors to reduce greenhouse gas emissions from cargo movements. One goal is to transition to zero-carbon-fueled ships by 2030.

Collaboration with shipping lines is essential to the success of these initiatives. “Without shipping line participation, you have no green shipping corridor,” says Caris, adding that the fuels of the future must be made available in sufficient quantities to meet the needs of shipping lines.

In December 2023, the ports of Los Angeles and Long Beach also unveiled a partnership strategy with the Maritime Port Authority of Singapore to establish a green and digital shipping corridor between Singapore and the San Pedro Bay port complex in Southern California.

Collaboration was a central theme of the announcement, made at the United Nations Climate Conference in Dubai. “Our success requires the resolve and dedication of the three partnering ports as well as our industry partners,” said Gene Seroka, executive director of the Port of Los Angeles. “Together, we will model the collaboration necessary to achieve our climate and efficiency goals.”

Port of Long Beach CEO Mario Cordero echoed Serkoka’s comments. “Over the past two decades, we’ve learned that collaboration between maritime industry partners is the key to making meaningful progress in reducing emissions and cleaning the air,” Cordero said. “This transpacific green shipping corridor takes this concept global.

“The strategies we develop here can be used as a roadmap by a larger network of seaports and supply chain companies to invest in programs, technologies, software, and infrastructure to decarbonize international trade everywhere,” he added.

In his annual State of the Port address to stakeholders in January 2024, Seroka reiterated the LA port’s commitment to sustainability and the environment, bolstered by the fall 2023 announcement of up to $300 million in federal grant funding for the development of “hydrogen hub” operations in the San Pedro Bay port complex.

Stronger Infrastructure

Top-priority infrastructure developments at the Georgia Ports Authority include the newly opened Mason Mega Rail, the largest marine terminal rail facility in North America.

Across all political lines, port infrastructure has also been a perennial theme of discussion among state and federal government leaders—and those discussions are expected to intensify in the 2024 presidential election year. National and state infrastructure priorities include waterway projects designed to strengthen supply chains, speed the movement of goods, and reduce costs.

U.S. ports are leading the way in these efforts, exemplified by initiatives at the Port of Galveston, Texas, where years of groundwork are expected to reap progress with developments including major cargo infrastructure improvements and free-trade zone expansion.

Located on the deep-water Galveston Harbor and ranked as one of the Top 50 U.S. Water Ports by the U.S. Department of Transportation, the Port of Galveston is a major cargo hub that also boasts three cruise terminals.

Guided by its 20-Year Strategic Master Plan, the port is maximizing its assets for aggressive growth.

“A major focus of the master plan is expanding our cargo business by increasing acreage and improving infrastructure at our West Port Cargo Complex,” says Rodger Rees, the port’s director and CEO. “A top priority is improving decaying waterfront infrastructure after decades of neglect.

“We’re also nearing completion of a two-mile-long interior roadway to move cruise and cargo traffic more efficiently, while helping to alleviate congestion on nearby downtown roadways,” he adds.

Infrastructure is also a top priority for the Georgia Ports Authority (GPA), which represents a network of both coastal and inland ports. Included among the GPA’s ports is the Port of Savannah, the single largest and fastest-growing container facility in America.

“The infrastructure development at our Garden City Terminal West facility and the upgrade and expansion of Ocean Terminal as a container facility will be exciting developments to watch,” says Ed McCarthy, GPA’s chief operating officer.

Another central theme commanding the attention of port leaders in 2024 can be expressed in a single word: linkage.

One example is the Council of Port Performance at the Port of New York and New Jersey. The council is a group of critical stakeholders including the Port Authority, the Shipping Association of New York and New Jersey, marine terminal operators, and labor.

“This group was formed about 10 years ago to deal with congestion challenges at that time, and it has been a critical element of our success at the port,” Bozza explains.

Creating Key Linkages

The Port of Galveston, Texas, is expanding its cargo business by increasing acreage and improving infrastructure, including a new interior roadway, at its West Port Cargo Complex. The road will help to move cargo traffic more efficiently and alleviate congestion.

“We learned from our challenges during the pandemic that you have to look at the entire supply chain,” he adds. “The council and our port efficiency team are trying to create linkages from the ship all the way out to the warehouse—and every point in between—so we understand all the individual nodes.

“By doing that, when the next cargo surge comes, we will understand where those bottlenecks are and hopefully work to address them quickly,” Bozza adds.

Data transparency has helped the port augment existing relationships with trucking and rail partners with links to warehouse and distribution facilities via a weekly dashboard developed with input from all elements of the stakeholder community.

Strengthened relationships at U.S. ports also extend beyond direct business partnerships. For example, the Port of Los Angeles regularly exchanges information and insights with ports around the globe. Among other benefits, Caris says, the ports have learned from one another about ways to improve their “shore power” infrastructure. This strategy helps them reduce emissions by enabling vessels to turn off their engines and plug into the local electricity grid to power auxiliary systems while at berth.

This new age of port leadership and the increased emphasis on sustainability and other forward-thinking priorities at ports across the country benefits not only supply chain stakeholders, but the U.S. economy and businesses as well.

Spending Billions to Boost Shipping on Great Lakes, St. Lawrence Seaway

Initiatives to address the needs of the next generation in maritime shipping extend from the coasts to the vital U.S. inland port network. Especially noteworthy are investments in the St. Lawrence Seaway, which enables oceangoing vessels to travel to and from the Atlantic Ocean and to reach ports in all five of the Great Lakes via the Great Lakes Waterway.

From 2018 to 2027, $8.4 billion will have been spent to enhance marine shipping on the Great Lakes and St. Lawrence Seaway, estimates an independent survey of public and private investment firms. The survey was developed as part of a project that was requested by a public/private sector committee of American and Canadian maritime organizations.

Prepared by economic and transportation consulting firm Martin Associates, the survey quantifies ongoing investments in the navigation system to help support long-term planning and economic development goals, while also building confidence in the system’s future viability.

The survey shows that as the world undergoes a shift toward more sustainable practices, the marine shipping industry and the U.S. and Canadian governments are partnering to actively invest billions to lead the transition. In addition to identifying the level of investment, the survey also reveals investment in specific aspects of the Great Lakes–St. Lawrence Seaway system.

Expressed in U.S. dollars, this includes investments of:

• $636 million in vessel enhancements between 2018 and 2022, with at least another $328 million planned by 2027.
• $2.1 billion to enhance port and terminal infrastructure between 2018 and 2022, with at least another $1.1 billion planned by 2027.
• $3 billion for waterway infrastructure such as locks, breakwater structures, and navigation channels between 2018 and 2022, with at least another $1.2 billion planned by 2027.

The size of these expenditures illustrates broad recognition that economic growth and greenhouse gas reduction ambitions can be achieved through significant investment in maritime shipping, say port leaders.

“The survey’s conclusion is clear,” said U.S. Transportation Secretary Pete Buttigieg. “Both the public and private sectors recognize maritime commerce on the Great Lakes and St. Lawrence Seaway remain essential to the economies of the United States and Canada, and both the public and private sectors are investing to protect this irreplaceable system.

“Through President Biden’s infrastructure law, we are investing in marine shipping, which will continue to support high-quality jobs, strengthen America’s supply chains, and drive sustainable economic growth.”

“For too long, we’ve thought about supply chains as cost centers,” says Rob Cushman, senior partner, supply chain transformation, with IBM Consulting. At their best, however, supply chains are growth drivers, he adds.

Automation is key to corporate initiatives to drive growth. As more supply chains digitize, they can deliver a wealth of data. A lack of automation, however, can keep supply chain leaders from accessing real-time, enterprise-wide information that can help them identify operational inefficiencies.

Here’s a look at the benefits possible from automating the supply chain.

Enhance Inventory Visibility

Many benefits possible with automation stem from the visibility it can provide.

Visibility and automation are key tools for companies facing pressure from customers, as well as internally, to cut inventory and costs.

“CFOs are closely monitoring supply chain and logistics operations,” says Ashutosh Dekhne, partner and head of Americas supply chain operations and tech practice with EY. “Many are questioning the labor required to make and ship items.” Automation can streamline processes, allow workers to contribute strategically, and cut costs.

The inventory visibility made possible through automation helps companies avoid overstocking products that are at risk of growing obsolete, or understocking hot-selling items and losing sales.

Accelerate Speed to Market

Companies can leverage automation to rev up speed to market. When they leverage dynamic planning solutions and employ automation, companies can act as soon as they receive market signals.

“Conversely, if a company takes several days to plan, it negates the benefit of getting the demand signal quickly,” Dekhne says.

Attract Workers

By making many warehouse and distribution center positions more appealing, automation can help companies tackle the current labor shortage. “Nobody wants to work in a facility where the easiest thing to use is their cell phone and everything else is 15 years behind the curve,” Dekhne says.

Meet Sustainability Goals

Even once products are in transit, automation has a role to play. Vehicle routing and scheduling solutions enhance full truck utilization and optimize routes, reducing emissions, among other benefits, says Robert Recknagel, vice president, logistics and manufacturing with Flexis, a provider of supply chain solutions. Integrating a three-dimensional container-loading solution further maximizes space utilization and cuts transportation costs.

These benefits have gained prominence as attention to sustainability increases. “More companies are aiming to streamline processes and align automation efforts with initiatives that address environmental concerns,” notes Craig Moore, vice president, sales, North America, with Körber Supply Chain.

Gain Control

Manual inventory management methods are no longer productive. Many companies are incorporating Inventory visibility technology into their omnichannel fulfillment operations to better predict inventory flows and reduce operating costs.

Once an organization has data, it needs to convert it to information. This may take the form of a supply chain control tower, which Gartner defines as “a combination of people, process, data, organization, and technology that captures and uses (close to) real-time operational data from across the business ecosystem to provide enhanced visibility and improve decision making.”

By assembling information from across a supply chain, control towers can develop “one source of truth,” says Barry Bradley, head of supply chain with Crisp, a collaborative commerce solutions provider.

When all areas of an organization work from the same information, they can make better-informed decisions, he adds.

Take the example of RxSugar, which provides allulose, a plant-based alternative to regular sugar, through more than 15,000 stores and 30-plus brick-and-mortar and ecommerce channels.

“As a relatively new product, our main challenge has been the supply chain-constrained ecosystem in which we operate,” says Steve Hanley, founder and chief executive officer.

The limited universe of allulose manufacturers, combined with RxSugar’s impressive growth, calls for a carefully planned and streamlined supply chain. To help reach this goal, RxSugar implemented a data platform from Crisp that can aggregate data on sales, distribution, inventory, and other functions from across the company’s distribution channels.

Hanley and his team can assess top-level demand across the network in real time, plan production, and keep shelves stocked. “We are now able to get ahead of our supply chain and we can order materials and packaging with 12-week lead times,” he says.

Leverage Robotics

Robots, such as Boston Dynamics’ Stretch, can boost warehouse efficiency and improve picking accuracy, among other benefits.

By 2027, more than 75% of all companies will have adopted some form of cyber-physical automation within their warehouse operations, according to Dwight Klappich, vice president and fellow with Gartner’s supply chain practice, in a recent brief.

Mobile robots typically require lower capital investments than fixed automation systems, says Rowan Stott, research analyst with Interact Analysis. In addition, it’s typically easier to add robotics to existing warehouses than to put in a new, fixed system.

Adding to robotics’ appeal is their dropping prices. Between 2011 and 2022, the average price of an industrial robot fell by about half, finds EY research. Conversely, wages and salaries rose about 43% over the same period, according to Statista.

Boost Decision-Making

Like control towers, digital twins can aid in decision-making. These are virtual representations of objects or systems that span their lifecycle, are updated with real-time data, and use simulation, machine learning, and reasoning to help decision-making, IBM explains.

Companies can use digital twins to simulate the impact of an event, such as a supplier that halts plant operations due to a weather event. To provide the most value, a digital twin should concentrate on modeling hot spots and critical components. “Be smart about what you want to model,” Dekhne recommends.

Improve Data Insights

In the supply chain world, artificial intelligence (AI) is capturing attention. Successfully implementing AI-enabled supply chain management solutions enabled early adopters to improve logistics costs by 15% and inventory levels by 35%, among other benefits, compared to their slower-moving competitors, McKinsey research found.

Generative AI is upping the ante. Generative AI empowers users to build their own interactive models, Deknhe says. For instance, a supply chain planner trying to determine the impact of a 20% jump in demand for a product has typically needed to manually assess supply levels and contact suppliers to get information on raw material supplies, among other data—a process that can take days. Generative AI can ask the same questions, work with the data, and adjust models to more quickly provide this insight.

Advance with Software

While traditional software solutions, like warehouse management systems, may not generate the same buzz as AI, they remain critical to many supply chains. They also continue to advance. Thirty years ago, companies could complete materials requirement planning (MRP) about once a week.

“We would dim the lights whenever we hit the enter key,” recalls Steven Benz, senior consulting manager with Panorama Consulting. Today, companies can generate MRP reports every 15 minutes.

Current algorithms can automate forecasting, inventory control, and supplier selection, among other functions. While algorithms—sets of finite rules or instructions to be followed in calculations or other problem-solving operations—aren’t true AI, they make software solutions more robust and useful.

Automate from End to End

More companies are evaluating and automating supply chains in their entirety, rather than focusing on optimizing individual pieces. A more comprehensive approach can help supply chains better handle disruptions, such as geopolitical events.

“End-to-end process automation can bring together siloed systems, connect people involved in different processes, and allow information to flow securely, says Gary Cassell, global industry lead, manufacturing and automotive, with Appian.

Organizations can act on the information to build resilience and optimize performance. When companies link their systems through a digital layer, they minimize the need to rip out solutions that are working but disconnected.

End-to-end solutions often encompass multiple systems. For instance, supply chain execution systems can expedite operations for swift, efficient task completion, while warehouse control systems (WCS) can serve as vendor-neutral hubs, orchestrating diverse material handling technologies for uninterrupted material flow. A WCS can integrate with a warehouse management system to optimize material flow.

The result? “An integrated process, enhancing warehouse throughput and performance,” Moore says.

Connect Through the Cloud and APIs

Automation has generally lagged where old systems need to be linked with new software solutions. Cloud-based software solutions can help by enabling the rapid exchange of data between all supply chain parties in real time, so data-based decisions can quickly be made.

APIs also offer a scalable solution for sharing data, unlike the generally cumbersome practice of emailing spreadsheets back and forth. APIs encompass a set of defined rules that allow different applications to communicate with each other. They enable access to information by sharing folders via the cloud.

Optimize Routes

Route optimization technology can improve delivery productivity while hitting customer service targets. This improvement can reduce delivery costs—distance, vehicles, or drivers—and increase delivery capacity.

It’s not only the operations inside warehouses or distribution centers where automation can drive efficiency. Route optimization software can leverage AI to dynamically match carrier capacity with loads, minimizing empty miles and helping carriers fill their trailers, says Justin Haines, director, fleet solutions with Coyote Logistics, which offers such a solution.

Improve Yard Management

In contrast to the automation seen in many warehouses and in transportation management, the “yard often is clipboards and walkie-talkies,” says Greg Braun, chief revenue officer with C3 Solutions, which offers yard management solutions. Yet technology has a role to play here.

Yard management automation can include a range of solutions. Some systems allow drivers to check in with their smart phones. Artificial intelligence can support task optimization, such as determining optimal trailer moves, Braun says.

As technology advances, the value of automating the supply chain will only grow. Companies that are quicker to leverage automation will gain first mover advantages, as well as the ability to attract top-notch talent. “It’s a win-win,” Dekhne says. n

7 Steps to Implementing Automation

While the benefits of supply chain automation are clear, the skill with which it’s implemented contributes to a solution’s success. These guidelines can help.

1. Focus on adding value. The solutions that will add value vary by company, says Lisa Anderson, president with LMA Consulting Group. Ecommerce retailers may find that automating the order-taking process adds the greatest value, while distributors might look to advanced analytics and planning solutions to better manage inventory and free up cash.

2. Take it step by step. Start with a solution that brings a rapid return on investment and addresses the most urgent problems, and then build from there. Introducing too many functions at once increases complexity and can overwhelm employees.

3. Invest in change management. When new solutions fail to live up to expectations, it’s rarely the technology that’s the reason, says Sandy Gosling, partner with McKinsey. Instead, it’s often a failure to build the capabilities needed to leverage the technology. Supply chain leaders can help employees understand how a new way of operating will benefit them and the company, and then train them on the systems.

4. Know your starting point. This isn’t always obvious, given corporate restructurings and changes in IT solutions. If you can’t identify the starting point, you risk generating needless disruptions when automating.

5. Check the data. The GIGO (garbage in/out) rule applies. While perfection isn’t necessary, data should be “directionally correct,” Anderson says.

6. Consider the impact to the organizational structure. It likely will change as new data becomes available. Employees who were good at finding problems may find their roles supplanted by technology. Instead, they’ll be charged with deciding how to address the problems.

7. Develop back-up plans. Automation can fail even with the best of care. Backup plans and systems can help with recovery until systems can be restored.

Pouncing on Automation

Automation is helping Tiger Tail USA “keep our team lean and efficient,” says Spring Faussett, president of the muscle recovery tools producer. Oracle/Netsuite’s manufacturing, inventory, and accounting system enables Tiger Tail to more systematically manage orders.

Among other benefits, Tiger Tail can enter product and vendor information, and then use reports and alerts to ensure proper ordering lead time and quantity forecasting.

When Tiger Tail receives inventory, it can quickly add this information and make it visible to all users. The company also uses inventory reports to work with vendors and shipping companies to ensure full truckloads.

“Although the system is expensive for our small company, it saves at least one employee and lowers accounting costs over the course of a year,” Faussett says.

On Tiger Tail’s consumer websites, custom APIs push orders into Netsuite, minimizing human handling. Custom APIs allow Tiger Tail to easily add new websites and products, which otherwise would be difficult to manage, Faussett adds.