There's no magic in the process, or the buildings, or the technology used at the military's sprawling distribution complex near Harrisburg, Pa. It's the ethic that pervades the DDSP that makes the operation something special.
Steve Geary is adjunct faculty at the University of Tennessee's Haaslam College of Business and is a lecturer at The Gordon Institute at Tufts University. He is the President of the Supply Chain Visions family of companies, consultancies that work across the government sector. Steve is a contributing editor at DC Velocity, and editor-at-large for CSCMP's Supply Chain Quarterly.
It's not too often that a supervisor in a distribution center puts his life in the hands of the workers on the line.
Once a month, Master Sergeant Sean Wilson does just that.
Wilson is team leader and master rigger—a certified parachute packing specialist—on a line at the Defense Distribution Depot Susquehanna Pennsylvania (DDSP), the military's sprawling distribution complex near Harrisburg, Pa. His crew packs parachutes for military use. And once a month, Wilson takes one of those parachutes—selected randomly by somebody outside the team—boards an aircraft that takes him thousands of feet above the base, and jumps out.
Wilson's trust in his team, and the team's commitment to ensuring that every parachute is reliable, stands as testament to the ethic that pervades the DDSP complex. At this facility, the phrase "good enough for government work" means something far removed from the pejorative it has become over the years. The phrase entered our lexicon during World War II, when something that was "good enough for government work" met the most rigorous of standards: You could literally stake your life on it. And that's precisely the standard that employees at DDSP hold themselves to today.
Making a difference
DDSP is the headquarters location of the Defense Distribution Command, which is the physical distribution arm of the Defense Logistics Agency (DLA), and the largest distribution depot operated by the Department of Defense. It sprawls over 380 acres, split between two locations near Harrisburg, providing military and commercial repair parts, clothing and textiles, medical supplies, and industrial and electronic components to military customers throughout the United States and around the world. DDSP has over $10 billion worth of inventory on the shelf, with more than 870,000 unique items in stock spread across over 1 million storage locations. Compare that to Wal-Mart, which systemwide handles on the order of 120,000 SKUs.
DDSP, with more than 3,700 military and civilian employees, is the largest of the 25 distribution centers operated by DLA both here and abroad, and it supports a customer base that includes units in Europe, Africa, Central and South America, Southwest Asia, and the eastern half of the United States. The facility houses 9.4 million square feet of covered storage spread across 58 warehouses, with the largest building, the Eastern Distribution Center, providing 1.7 million square feet alone.
In short, it is a distribution goliath, shipping billions of dollars of supplies to locations around the world every year. And it has one customer: the U.S. military. Crucially, it is the DC supporting operations in Southwest Asia, where the United States continues to fight wars in Iraq and Afghanistan.
That knowledge makes employees at the facility—40 percent of whom are veterans—take their jobs very seriously. As you might expect, the relationship between workers and management in the unionized facility is different from what might be found in DCs in the private sector. The same might be said of the employees' attitude toward their work.
Take Bob Keeney, supply specialist and former vice president of Local 2004 of the American Federation of Government Employees, AFL-CIO, for example. Keeney, a military veteran like so many of his peers, has been in the warehouse for 32 years. His father-in-law came back from Korea and went to work there, and Keeney did the same thing when he got out of the Navy in 1974. His particular expertise is in the nasty stuff that moves through a military warehouse: explosives, radioactive materials, fumicides, and other sorts of ugly things.
While talking, he suggests that we shift the conversation after hours to a bar called Julie's near the DC, and he offers to buy me a beer. He is dressed in a T-shirt and jeans; the handiwork of tattoo artists adorns both arms. We get on the topic of continuous improvement and DDSP's current lean initiative. It turns out that Keeney likes lean. "Partnership [between management and the workforce] is the way to do the work ... I look for the day when we have everybody on board. The old way was adversarial," he says. Now, however, "you become like a cog. You understand where you are on that wheel. You try to make it easy for the next guy."
He sees the work as important. "I enjoy making a difference, trying to do good," he explains. "We have obligations to the soldiers in the field, to the agency. If you don't believe in what you are doing, you're not going to be a good employee."
Focused on the warfighter
The same commitment comes across in conversations with senior management. Ed Visker has been the deputy commander of the DDSP since June 2006. Visker, who has a B.S. in banking and finance, as well as a couple of master's degrees, including one in logistics systems management from the University of Southern California, has spent 30 years in the logistics business, primarily with the military. Before coming to DDSP, he reached the rank of colonel in the U.S. Army. He served in the Airborne, and his tour included deployment to Iraq during the first Gulf War and time in Special Operations. He's got the qualifications and the experience to be a senior manager in any global distribution business.
Visker first came to DDSP as a soldier. "As a young platoon leader and company commander, I was in a general supply company. We used to bring the unit here to train. We helped clear the footprint for this building that we're in right now. We brought in all our rough-terrain forklifts and cranes and set up shop down by the pond for the month of February. We emptied out the old sheds that used to be sitting here."
He describes how he sees the mission of DDSP and how to accomplish it. "I don't know that anybody would tell you that they're a warehousing professional. We are supporting the warfighter," he says. "I think you would get that out of just about anybody you talk to. We're really focused on the warfighter. I share with them pictures that I brought back from my time in the desert to remind them that these guys are out at the pointy end of the spear and it's important."
That perspective drives the operation. "We're a strategic platform.We need to think bigger," he says. "We're focused on three basic values: respect for people, customer focus, and continuous improvement. It gets the folks on the floor more engaged. It's largely about relearning: How do we manage the organization? How do we lead people in the organization?"
Lessons from the private sector
DDSP is taking lessons from the private sector. For example, managers have visited a Wal-Mart DC about 100 miles from their facility to see how the retail giant employs technology. They have visited Toyota and adopted many of the fundamentals of the Toyota Production System to drive continuous improvement.
Their success in imbuing that sense of mission throughout the operation reveals itself in a conversation with a group of DDSP employees sitting around a conference table. The "youngster" is probably in his late 30s, but most of them qualified for AARP a long time ago. Some are white collar, some blue collar, but they're all veterans.
Many retired after a career in the military and came to the DDSP, while others did a tour or two. Their service experience spans all of the military departments. They have tales that range from the Vietnam War to Southwest Asia, covering a lot of ground in between.
The conversation drifts toward why they do what they do for a living now. One reminisces about what it was like when he was in the field and heard the magic words, "Your supplies are here." He's a middle manager now, a believer in getting out with his team. He offers, "Every day I tell them about the men and women we're serving. My heart is a heart of compassion for the mission. I don't ever give it up."
Another is more matter of fact. "They need it when they need it. That's what drives me," he says. "Some of them are giving their lives."
A late arrival joins in, asserting, "I'm willing to do whatever it takes to get that soldier what they need."
He gets a little more introspective, recalling what it was like for him when he came to the DDSP. "I got here and didn't realize what I'd gotten myself into here." He was on the floor one day, looking around, and saw "a section full of caskets. I realized that was going to be the last ride home for some soldiers," he recalls. "My whole mindset changed. People are depending on me."
No magic
The scale of the operation at DDSP is impressive, but the facility really isn't. Some of the buildings date back to World War I, and even the 1.7 million-square-foot building dates back to the mid '80s. There's no magic in the process, or the buildings, or the technology.
What makes DDSP special are the people, the pride, and the intelligence of the leadership that is harnessing the power of those two combined.
The final step in the distribution process at DDSP includes a personal statement from whoever does the final check on the shipment before it leaves the facility. Each shipment going out has a sticker on it, and the sticker is signed by a real person. It reads, "Packed with Pride at DDSP."
Leaders at American ports are cheering the latest round of federal infrastructure funding announced today, which will bring almost $580 million in Port Infrastructure Development Program (PIDP) awards, funding 31 projects in 15 states and one territory.
“Modernizing America’s port infrastructure is essential to strengthening the multimodal network that supports our nation's supply chain,” Maritime Administrator Ann Phillips said in a release. “Approximately 2.3 billion short tons of goods move through U.S. waterways each year, and the benefits of developing port infrastructure extend far beyond the maritime sector. This funding enhances the flow and capacity of goods moved, bolstering supply chain resilience across all transportation modes, and addressing the environmental and health impacts on port communities.”
Even as the new awardees begin the necessary paperwork, industry group the American Association of Port Authorities (AAPA) said it continues to urge Congress to continue funding PIDP at the full authorized amount and get shovels in the ground faster by passing the bipartisan Permitting Optimization for Responsible Transportation (PORT) Act, which slashes red tape, streamlines outdated permitting, and makes the process more efficient and predictable.
"Our nation's ports sincerely thank our bipartisan Congressional leaders, as well as the USDOT for making these critical awards possible," Cary Davis, AAPA President and CEO, said in a release. "Now comes the hard part. AAPA ports will continue working closely with our Federal Government partners to get the money deployed and shovels in the ground as soon as possible so we can complete these port infrastructure upgrades and realize the benefits to our nation's supply chain and people faster."
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”