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."
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.