To the millions of fans awaiting the release of Harry Potter and the Deathly Hallows , the book's appearance at midnight on July 21 may have felt like magic. But it was actually a matter of careful planning and flawless execution.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
It may have been the most anticipated event in the history of publishing. It certainly was the largest book release on any single day. For the millions of fans who had followed Harry Potter as he battled the evil Lord Voldemort through the previous six books, the culmination of it all—the release of the seventh and final installment—could not come soon enough.
Bookstores around the country stayed open late into the night on July 20, many offering celebratory parties as they awaited the midnight release of Harry Potter and the Deathly Hallows. Within 24 hours, booksellers of both the brick and mortar and online variety had collectively sold 8.3 million copies of the final episode in author J.K. Rowling's wildly popular series.
In delivering 12 million books on time to customers across the United States and 29 other countries under a blanket of heavy security, the U.S. publisher, Scholastic Inc., faced challenges on a par with those faced by Harry and his friends in their struggle against the most powerful dark wizard of all time. Those 12 million books represented the largest single book distribution project in the industry's history—surpassing the previous record of 10.8 million held by book six in the series, Harry Potter and the Half-Blood Prince, which was released in 2005. With millions of fans pre-ordering books and expecting them to arrive on Saturday morning or be ready at their booksellers in the pre-dawn hours, failure to have books available as promised was not an option.
Nor was releasing the books early, for that matter. Scholastic took the strictest of measures to ensure that not one of those copies slipped out of its control. "When you think about the number of exposure points, it is just massive," says Andrew Yablin, vice president of global logistics for Scholastic Inc., who had overall charge of the book's distribution. "We tried to minimize the risk by having the books out there for the least amount of time possible."
That was no small feat given that the books moved by truckload, less-than-truckload (LTL), rail, and air—and in at least one case, on car-free Mackinac Island in Michigan, by horse and wagon. But it all worked out in the end, says Yablin. "Everyone had books who was supposed to have books," he says.
No magic act
Scholastic's success was no act of magic. Rather, it was a carefully planned and executed distribution effort that required close collaboration among members of the company's logistics team and a core group of carriers.
Planning for the rollout began in January, even before Scholastic had the finished manuscript. Internally at Scholastic, the project would require tight coordination among members of the logistics staff and their colleagues in sales, purchasing, customer service, and manufacturing. Yablin points to Ed Swart, director of operations, and Francine Colaneri, vice president of manufacturing and procurement, as key partners and team members.
The close collaboration also extended to Scholastic's logistics partners: J.B. Hunt, Combined Express, Yellow Transportation, and ActivAir. J.B. Hunt, one of the nation's largest truckload carriers, moved the majority of the books—all but about a million of the copies. Hunt operated in partnership with Combined Express, a Bensalem, Pa. based logistics and trucking company that specializes in publishing and retail shipping. Yellow Transportation, a major LTL carrier, handled domestic LTL shipments. ActivAir, an international forwarder that specializes in book and magazine distribution, managed international shipments to 32 destinations in 29 countries.
Yablin notes that several of Scholastic's carriers were old hands at the Harry Potter distribution game. Both J.B. Hunt and Yellow, for example, had been involved in previous Harry Potter releases. Hunt, in fact, was able to pull together the same team to work on the most recent rollout. And Yellow Transportation's team was headed by Terry Budimlija, director of operations for the Chicago area, who had played the same role in earlier releases.
What's the plan?
During the months leading up to the rollout, each of the carriers met with Scholastic managers frequently and developed detailed distribution plans, which Scholastic managers had to approve. The carriers were bound by strict confidentiality agreements until the project was complete.
The plans were based on various factors, such as length of haul and, for international shipments, customs clearance. Among other matters, carriers were expected to spell out how they planned to balance the need to deliver the books early enough for Scholastic's customers to supply their own (or their customers') outlets with the need to keep the books under wraps as long as possible. They also had to address matters pertaining to security and cost. Yablin, not surprisingly, paid particular heed to the carriers' plans for maximizing shipping density in order to minimize both the total number of shipments and the transportation bill.
Yablin points to the planning process with Yellow as an example of how the collaboration paid off. "The biggest difference this time was the rare opportunity for the carrier to sit at the table and help design the logistics plan," he says. "Six months ahead, their leadership team sat [down] with me and helped me maximize what we could do."
The planning meetings weren't restricted to the carriers' management teams, however. Mark Calcagni, J.B. Hunt's vice president of sales for national accounts in the Northeast, reports that the meetings held by Scholastic, Combined Express, and Hunt also included safety, security, maintenance, customer service, and other Hunt personnel as well as rail and truck operations managers."We didn't leave anyone off the list [who] might touch this," he says.
With a project of this scale, Calcagni explains, Hunt felt that it was essential to get all of its people on board. "You can have all the technology," he says, "but it comes down to drivers and the other people." In particular, Calcagni praises Steve Keller, Hunt's senior operations manager for special projects, and Larry Koger, the carrier's director of operations and customer service, for their work on the project.
Yellow Transportation also made it a point to include people from all areas of the organization in the planning process—especially its security team. "We involved them up front to make sure we had a good security plan," says President Maynard Skarka. "It is safe to say that a project like this gets the highest security."
Load 'em up …
As soon as information on the book's actual size and weight became available, Scholastic began the process of calculating load plans. "Then we could plug that into a formula to see how many books we could get on a truck and then reserve the capacity," Yablin says. The eventual load plan came within 1,000 pounds of the legal maximum allowable weight on the trucks.
When it came to the particulars of load planning, however, Scholastic's logistics partners took on much of the responsibility. For full truckloads, Combined Express— which acted as a third-party logistics service provider— worked with Hunt to design a uniform plan: Each truckload would be exactly the same as the next. The uniform loads were palletized, with each pallet shrink-wrapped with a corrugated top and banded. "It was a pretty tight package," Yablin says. "We tried to design the package so we could tell pretty quickly if product had escaped the system."
Before the trailer doors were closed and sealed, every load was photographed. Yablin compliments Hunt for its performance in executing the plan. "Hunt was phenomenal," he says. "They did not drop one load."
For LTL shipments, Yellow Transportation had charge of loading. In contrast to previous projects, Scholastic and Yellow agreed that the carrier would be responsible for load and count, which made Yellow responsible for any discrepancies at delivery. "We brought their folks in and allowed them to load out the way they wanted to,"Yablin says. "We had the load plan ahead of time. We knew which ZIP codes were served by which terminals, and we organized the flow out of the DC by terminal and by trailer."
… and move 'em out
As the official release date neared, the process of moving the books from the binderies to distribution centers run by major resellers like Barnes & Noble, Borders Books, and Amazon got under way. J.B. Hunt handled these shipments, which were all full truckloads that moved direct to the DCs.
The delivery schedule was based on Combined Express's length-of-haul calculations from the binderies. Shipments for destinations farthest from the binderies moved out first for delivery to staging locations within a day's drive of the customers' DCs.
Hunt brought all of its staged trailers to company facilities chosen for their tight security. "We picked out places that we felt were secure, with people on site 24 hours a day," Calcagni says. "It was kind of a secretive operation. We handled it through our normal flow, but we watched it differently."
On site, Hunt used trailer-tracking and -monitoring technology from Terion Inc. to provide geo-fencing around each trailer. "If a trailer moved 10 feet, it would set off an alarm," Yablin says. "You don't want to depend on the guard at the gate. Before it would get to the guard gate, it would get turned around."
In addition to the electronic safeguards, security personnel checked the trailers' seals several times a day. Once the trailers hit the road, Hunt relied on its Qualcomm satellite tracking system to alert dispatchers if a trailer strayed from its prescribed route.
In all, about 70 percent of the loads moved entirely over the road. The remainder moved as intermodal shipments, with Hunt providing the drayage and the Burlington Northern Santa Fe and Norfolk Southern railroads handling the rail linehaul. All deliveries were by appointment.
"There were a lot of pieces [to put together] to make this work," Calcagni says. "This laydown was our biggest success. We had four book laydowns for experience and had the same team members involved. That was key. It was flawless."
Still, the project was not without its challenges. One of the issues for Hunt, for example, was asset utilization. As with all truckload carriers, one of Hunt's prime concerns is keeping its equipment moving (and productive). But the size of the project and the security requirements meant tying up some trailers for longer than usual. "Because of the production schedule—with that volume we had to work far ahead of when we wanted the customer to have the product—we used Hunt for storage in transit," Yablin says.
Covering the bases
While Hunt handled the truckload shipments, Yellow Transportation took charge of the LTL shipments, which moved to their destinations from Scholastic's Jefferson City, Mo., DC. LTL shipments for the East and West coasts went out first, followed by those headed for destinations closer to Jefferson City. Yablin notes that as a result of the advance planning, 60 percent of the LTL shipments handled by Yellow were able to move direct to destination terminals, avoiding intermediate handling.
The LTL shipments involved about 250 to 275 Yellow terminals, with deliveries to all 50 states. The plan called for shipments to arrive at secure Yellow facilities the night before the deliveries were scheduled. "The time of the shipments' release was based on transit times," Yablin says. "They know to the hour how long it takes."
Skarka attributes the project's success in part to the carrier's efforts to communicate the delivery plan throughout the Yellow network. "We had to make sure everyone in the system understood the plan and that everyone had accountability," he says. "That was the most challenging piece."
Yellow took special care to see that nothing went awry with the deliveries. Scholastic and Yellow even set up a special toll-free number for drivers or consignees to call if they had any delivery issues. "We didn't want refused deliveries. We didn't want anything coming back to us," Yablin explains.
For the tightly controlled release, all of the books were packaged, wrapped, and labeled with security in mind. Labels, for example, did not identify the book, and opaque black shrink-wrap on skids and pallets obscured the contents and made any tampering quickly evident. To add to security, drivers were told only that they were picking up printed material.
Yellow Transportation, however, took things a step further. The carrier also designed a special label for the shipments that included both the delivery date and instructions in bold type telling drivers not to deliver early. "In their network, early delivery is a good thing," Yablin says. "They had to re-train their whole workforce that early is not good."
Potter goes global
Scholastic's logistics challenges weren't limited to the domestic arena, however. The publisher's logistics team also had to arrange for the air shipment of books to 29 foreign countries to coincide with the release date.
With the previous Harry Potter releases, Scholastic had permitted consignees to select their own forwarders. But that had sometimes led to problems with shipment visibility. So this time around, the company decided to use a single provider for its export shipments: ActivAir, a forwarder based in the United Kingdom. "We told our export customers that if they were going to get product, we were going to use one freight forwarder," Yablin says. "That way, we were able to control the timing of the release from us to the foreign airport."
As with the trucked shipments, all of the air shipments moved on pallets. Those pallets were built for air export at one of the binderies and moved by J.B. Hunt to an ActivAir facility. That facility provided 24-hour manned security, primarily by off-duty police officers hired for the project. All shipments moved in wide-body aircraft that could accept LD7 aircargo containers. "Nothing was loaded in the belly loose," says Joe Kronenberger, vice president for the United States for ActivAir. The forwarder also established an over, short, and damaged (OS&D) reporting process on receiving to ensure that goods arrived intact.
When it came to scheduling, the goal was to have shipments clear at destination as close to the release date as possible. "Scholastic allowed us to put the plan together based on our experience with clearance and delivery in each country," Kronenberger reports. The shipments moved on a total of 17 airlines and all- cargo carriers.
"My guys did a great job," Kronenberger says. "I was able to put this in the hands of my general manager, Kent Gauger, and export operations manager, Andrew Barnes. Empowering people from the very top down … made this a success."
Yablin likewise has nothing but praise for his own team and his carriers. "This is part of history," he says. "This one will be hard to eclipse."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”