Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
Three months before he was to graduate from Wartburg College in Waverly, Iowa, Karl Manrodt turned on the radio. And what he heard changed his life. A reporter was interviewing a New York City cab driver who was trained as a clinical psychologist but couldn't find work in his field. That was a jolt to Manrodt, who was majoring in philosophy and psychology. He began to wonder whether he, too, faced a future driving taxis.
His early experiences in the business world only confirmed Manrodt's fears that he had somehow gotten off track. "I thought having a philosophy position within a university or within a company would be an ideal posi tion—just to be able to philosophize and help the company," he says. But reality soon set in. "I ended up in a lot of sales positions," he admits.
At that point, Manrodt changed course. He enrolled in a master's degree program at Wright State University in Dayton, Ohio, where he earned an M.S. in logistics. He then went on to earn a Ph.D. in logistics and trans portation at the University of Tennessee. And the rest, as they say, is history.
Today, Dr. Manrodt is an associate professor in the Department of Management, Marketing and Logistics at Georgia Southern University in Statesboro, Ga., where he teaches classes in business logistics, intermodal transportation and marketing research. But Manrodt, who was recognized by DC VELOCITY as a Logistics Rainmaker in 2004, is not one of those academics who stays locked in the library. He regularly goes out into the field to conduct research. In the past few years alone, he has completed studies on lean supply chains, visibility, information technology and the supply chain, collaboration, CEO perspectives on supply chain management, and, with DC VELOCITY, three annual studies on performance metrics. He has also published scores of articles as well as two books: Customer Responsive Management: The Flexible Advantage and Keeping Score: Measuring the Business Value of Logistics in the Supply Chain, as a joint project with the Council of Supply Chain Management Professionals.
Outside of school, Manrodt serves on the Council of Supply Chain Management Professionals' board of directors and as a member of the College-Industry Council on Materials Handling Education, the Material Handling Industry of America and the Warehousing Education and Research Council. He is also executive director of the Flat Glass Logistics Council, a group organized to support safety guidelines for the movement and storage of glass.
Manrodt spoke recently with DC VELOCITY Editorial Director Mitch Mac Donald about how he goes about preparing students for a career in logistics (lesson 1: forget the 40-hour work week), where many schools go wrong in undergraduate logistics education, and why we may never be able to agree on the definition of supply chain management.
Q: Many of your fellow University of Tennessee graduA ates have gone on to corporate jobs at companies like 3M, Lowe's and Dell, but you chose another path. How did you end up teaching?
A: I graduated from the University of Tennessee in December 1993, in the midst of a very tight job market. I was fortunate in that the newly appointed department chair wanted to start a research office (the University of Tennessee's Office of Corporate Partnerships). The goal was to do funded research with companies to bring funding into the university, but also to give our MBA students more experiences. I ended up working in that office for seven years. I helped start up the operation and later on I headed it. I worked with a wide variety of companies on logistics and marketing projects. It was a great experience.
That job also gave me valuable experience in building relationships between academic and practitioner professionals in the logistics field. One of the major things that college professors have to do, especially in a business related curriculum, is learn how to integrate the theory with the reality of life on the business side. If we want to remain relevant and critical in our economies, we really have to do that.
Q: You moved on to Georgia Southern six years ago. I assume you're still involved in the same pursuits: research, corporate outreach and teaching?
A: Yes. One of the greatest things about Georgia Southern, and certainly one of the things I have appreciated the most, is the fact that many of our students are the first members of their family to attend college. Preparing them for logistics careers requires a little bit more work than it would at a typical university. I'll give you an example. Before we had our first career fair, I asked my students what kinds of questions they were going to ask. One student raised his hand and said: "I'm going to ask if they have benefits." He was genuinely puzzled when I advised him not to ask that question. We had to explain to him that 100 percent of the companies represented at our career fairs offer benefits and you don't have to ask about that.
It's very exciting at graduation when you meet mom and dad for the first time and they say "We've heard so much about you; we've heard so much about the other faculty members" and you really come to see how you are changing lives. That's been incredibly gratifying.
Q: What skills or traits serve you best when you go to work each day?
A: Well, I think there are two. The first one is work ethic. My students don't believe me when I tell them this, but I'm not really that smart. What I can do, however, is work harder than a lot of other people I know.
It's impossible to overstate the importance of a strong work ethic in today's business environment, and I want to prepare my students for the reality of a working life. One of the things I try to get across to them is that we don't work nine to five anymore. No one works nine to five. If you really want to succeed in life, you are going to be "on" a lot of the time. That means you've got to understand how to balance your life and your work. That is really, really tough. But it's also, I think, one of the key things that has helped me get where I am today. It's not all ability; a big part of it is a willingness to go that extra mile.
Q: You mean to tell me hard work pays off? What a concept! What's the other skill you rely on?
A: Time management. I meet with several of my students weekly to talk about time management and their schedules. I have them write down exactly what they're working on every single hour for a 40-hour work week—what they're doing, what they're going to study, what classes they have to attend. I'm trying to get them to a point where they really understand how to schedule their time and energy to be more successful.
Q: What do you do to prepare your students specifically for a career in logistics?
A: Number one, you have to teach them that their life is going to be one of continual change. You must instill in them the idea that they will always be learning. If they want to get ahead, they are really going to have to continually learn and focus in on that as much as they possibly can.
The second thing, obviously, is giving them a solid education in logistics and transportation along with an understanding of what supply chain management is all about. That's really critical because a lot of our colleagues, especially on the undergraduate side, have focused back in on teaching all about supply chains. There is nothing wrong with that, but it is very theoretical. Applying that may not necessarily be what they do on their first job. The recruiters who come to our campus—a lot of motor carriers, transportation service companies, and third-party logistics service providers—really want them to have a pretty solid knowledge of those two areas: logistics and transportation. That is the information we're trying to give them. But we also want them to have at least a basic understanding of the supply chain so that if later on, they enroll in a master's program, it is not a foreign topic.
Q: So, you want them to have both a strategic and a tactical background educationally?
A: Precisely. I want my students to be able to walk out of our classrooms and into their employer's office and be able to provide value.
Q: Let's switch gears to the business side. What do you see as the biggest challenges facing the logistics and supply chain management profession?
A: As simple as it sounds, I think our number one challenge will be to agree on a common definition of supply chain management. It's a hurdle that I'm not convinced we, as a group, will ever clear.
Q: You don't think we will ever reach agreement on that point?
A: Quite honestly, I think it's that big an issue. How long have we debated this? A decade, at least. Yet not long ago, when we surveyed a group of academics, consultants, and leading practitioners and asked them to define supply chain management, we got no consistent response. If I were to go out in the market today and do the exact same thing, I'm confident the results would be the same. I think everybody has a sense of what it is, but the agreement really isn't there.
And that's a problem. If those of us who live and breathe logistics and supply chain have a hard time defining it, how can we expect someone in, say, finance to get it? That's where the issue lies. Consider what happens when a CFO goes to a meeting and tries to discuss supply chain matters with other CFOs. That CFO probably has a very specific idea of what the supply chain is, but chances are, the CFO sitting next to him or her has a completely different idea. It's hard for them to find a common point of reference.
Q: How do we go about getting everyone on the same page?
A: Maybe we don't. Maybe we just focus on understanding that a supply chain is a big, hairy monster that requires us to integrate processes across multiple organizations. Maybe we just say, "It is a sort of umbrella that encompasses almost every aspect of your operations." From there, we can at least move on to specific expectations of what a supply chain needs to be on a company-by-company basis. And from there, we can work on those key processes that are critical to multiple organizations.
Q: What's the next biggest challenge?
A: Number two on the list would be enlightening upper level and top management as to the implications of supply chain management excellence for their organization. We need to educate them on how it can really change for the better the way they operate, and hopefully, succeed.
If we can get to the point where we can agree on a common definition of supply chain and achieve across-the-board buy-in at the boardroom level, I think life will get very, very exciting for logistics professionals.
As for the likelihood that will ever happen, there are certainly companies that are moving in that direction. It's not a large number, but there are some that really understand what the supply chain is all about. At minimum, they're moving in the right direction.
Q: What are some of the biggest changes you have observed in the typical logistics operation over the past 15 years?
A: You just can't discount the impact of technology. When you start looking at what we can do today compared to even 10 years ago, it is just absolutely astounding. Technology has changed fundamentally how we think about our business. Who would ever have thought that you could sit in a hotel room in New York City and be able to see precisely what SKUs are sitting on the shelves of warehouses all over the world? And who would have thought that we'd someday have a tool like GPS that would let us track a shipment in real time as the truck hurtles down the highway?
Q: What about the flip side? Despite all the new enabling technologies and so forth, would you agree that the objectives of logistics management have largely remained the same?
A: No doubt. The goals are all the same. We are just trying to get more efficient.
Q: Do you feel that it's important for academics to carve out a niche—say, metrics or third-party services or lean operations? And what can academics contribute to the profession?
A: Yes. I think we really have to specialize for the simple reason that you can't know everything. Given how rapidly things are changing, just trying to keep up
has become incredibly difficult.
When I meet with a group of executives, one of the things I like to ask them is how they stay up to date. You have so many ways to gather information that you never had before. How do you keep up with your e-mail? How do you keep up with current reading like DC VELOCITY? How do you read it all, assimilate it, and move forward? I don't think anybody can do that, so I think a niche is very beneficial for an academic.
As for what value academics bring to the profession, we're the only ones who have the luxury of time to reflect on the macro issues and their long-term implications. Many times, deadline pressures and the daily demands of the workplace prevent practitioners from looking out more than a week or two. An academic ought to be able to step out of that and be able to see this much broader picture and try to get a sense of where things are going.
Q: You're helping the people who are stuck in the "I have no time to think today; I'm too busy doing my job" trap.
A: Ideally, that's what we can bring to the relationship. The sad news is that academics are starting to find themselves just as busy as the practitioners. Keeping up is just incredibly difficult. Once again, the answer may lie in specialization. We can only do so many things.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."