Nearly three months after Hurricane Sandy devastated the northeast United States, the supply chain is struggling to gain the traction needed to help the nation's most populous region get back on its feet.
As the calendar turns, the recovery work that might have otherwise been further along has instead been frustratingly slow to take shape, according to the American Logistics Aid Network (ALAN), a group formed after Hurricane Katrina in 2005 to connect disaster relief agencies with individuals, companies and associations looking to provide logistics capabilities and resources to stricken areas.
In New York City, Long Island, and northern and central New Jersey, areas that bore the brunt of Sandy's wrath, there have been few long-term requests for the transport of building materials necessary to support a normal recovery, according to ALAN officials.
"There is progress. It's just not moving as quickly as we hoped," said Kathy Fulton, ALAN's director of operations.
Sandy made landfall along the New Jersey shore on October 29, packing a lethal combination of rain, wind and snow. Dubbed a "superstorm" for its enormous 900-mile width and a near-record low level of barometric pressure, Sandy spawned massive wind gusts, tidal surges, and blizzard conditions that meteorologists said were unheard of for a tropical storm.
Sandy killed more than 200 people in the U.S. and the Caribbean, and caused about $62 billion in damage. It is the second-costliest natural disaster in U.S. history behind Hurricane Katrina, which cost about $125 billion in inflation-adjusted dollars.
Several factors have slowed the recovery process. Bureaucratic red tape has frustrated homeowners and businesses that have filed insurance claims. There is also Congressional delay in appropriating billions in federal dollars. The House of Representatives, which has been sharply criticized for dragging its feet on voting for relief funding, approved $50.7 billion in aid last week, less than the $60.4 billion bill the Senate passed late last year.
As of Monday, however, final legislation had not been sent to President Obama's desk for signature, meaning that it's been 82 days from the storm's first day and its victims have yet to receive federal aid.
Fulton said the funding should brighten the prospects for recovery and get the wheels of commerce grinding again. "Anything that helps boost the economy for the region will improve the supply chain situation," Fulton said.
But the flow of federal funds may do little at this point to help areas so devastated that relief workers are still in "response" mode to provide food and shelter to those who lost everything. There are even some areas of the region still recovering from Hurricane Irene, an August 2011 storm that hit the Northeast and New England with significant flooding but was nowhere near the magnitude of Sandy.
Temporary housing remains inadequate for the densely populated region living in such a wide area affected by Sandy. Even many relief workers can't find shelter, according to ALAN officials. The supply chain's biggest immediate challenge is to find some type of lodging for those workers so they are capable of helping survivors, Fulton said.
Sandy wreaked such widespread devastation that many trucks have not been able to navigate around the rubble to make deliveries. Perhaps the most enduring images of the enormous physical damage are aerial photos of a seemingly endless line of damaged cars parked January 9 at a Long Island air park waiting to be auctioned.
Another issue is how to dispose of thousands of items sitting in a decrepit warehouse in central Islip, Long Island, about 50 miles east of New York City. The facility houses in-kind donations for multiple relief agencies that lack their own warehouse space, and were donated by individuals, businesses and groups from across the nation. The in-kind donation programs for New York and New Jersey are managed by Adventist Community Services, a highly regarded organization that works through memorandums of understanding with the two states.
However, the aging facility has no heat or running water. The building is set for demolition, and Adventist has until Feb. 8 to remove the goods from the warehouse and find homes for them.
Adventist has sufficient material handling equipment to remove the goods from the facility. However, other agencies are facing a void in available lifttrucks. Many lifttrucks were damaged beyond repair by the storm, and there is a lack of adequate replacement quantities, Fulton said.
Today, ALAN is doing what it can to assist in what has become its biggest disaster relief effort since its inception. For example, it is linking relief groups seeking to replace so-called durable medical equipment like examination beds with a medical surplus recycling program, and will also connect the agencies with transportation providers to get the goods to their destinations.
No one knows how quickly or completely the Northeast will recover from Sandy. John T. "Jock" Menzies, ALAN's president, said a full recovery will take three to five years. Yet Menzies characterized Sandy as a "disaster" but not a "catastrophe," the distinction being a catastrophe creates a totally new way of life and commerce, and that the affected region never returns to what it was like prior to the event.
Before Sandy, ALAN's two biggest involvements were the January 2010 earthquake in Haiti, and the March 2011 earthquake and tsunami in northeast Japan. While the two events may have been somewhat similar, the responses couldn't have been more different, Menzies said.
Haiti, a poor country with socio-economic instability, was virtually flattened by its quake, which killed an estimated 230,000. Three years later, about 600,000 Haitians still live in tents, compared with about 750,000 in the disaster's immediate aftermath.
In contrast, Japan, a wealthier, more advanced society with strong cultural homogeneity and proven resiliency in addressing natural disasters, recovered almost fully within three months after the earthquake and tsunami, even though the World Bank listed it as the costliest natural disaster in recorded history at about $235 billion.
The recovery in Japan was so remarkable, Menzies said, that he had difficulty distinguishing photographs taken after the disaster with those that were taken before the quake.
Fulton said the post-Sandy recovery will be "uneven" across the region, and it will depend on the allocation of funds, the level and effectiveness of political leadership, and the involvement of the respective affected communities. Still, the powerful socio-economic forces in the U.S. give it "great capacity to recover" from the disaster.
Menzies said ALAN, like all those involved in Sandy relief efforts, will learn from the disaster, enabling the group to more effectively deal with future events. Of the many challenges confronting logistics planners, he said, the overarching question may be "if we are going to support the building in areas that are susceptible to these kinds of events."
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
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.”