Military veterans are highly qualified for jobs in logistics and warehousing, but the transition from the armed forces to private industry isn't always easy. Understanding the differences will help ensure a successful experience for everyone.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
With the U.S. military presence in Afghanistan on the wane and the war in Iraq over, thousands of troops from all branches of the armed forces have been coming home, and thousands more are expected to return over the next two years. Some choose to stay in the armed forces, while others seek jobs in the private sector.
According to government statistics, military vets—many of whom have experience in logistics, material handling, and warehousing—have a higher unemployment rate than the population at large. Meanwhile, employers are having a hard time finding qualified people to fill positions in those same areas. Clearly, this is a first-class opportunity to match talent supply with employer demand.
Yet a successful match is not guaranteed. There are enough differences between the armed forces and private industry that the transition isn't always easy. Understanding those differences can help both veterans and employers make that transition a successful one.
Reach out and recruit someone
Interested in recruiting military veterans for warehousing and logistics positions? Here are a few suggestions on how to reach out to them and let them know of your interest:
Work with local and state veterans agencies, which have databases of unemployed vets and can help to set up open houses and collect applications.
Advertise in military publications or on any of the dozen or so Internet job boards that are aimed at military personnel (check that they are affiliated with or approved by military support organizations), as well as on general logistics job boards like JobsInLogistics.com and JobsInTrucks.com.
Work with economic development agencies in areas that have a heavy military presence, particularly logistics and supply facilities. One example is the greater Jacksonville, Fla., area, which hosts four military installations, including major logistics hubs for the Marine Corps and the Navy. The city of Jacksonville's Military Affairs, Veterans, and Disabled Services Department; the Veteran's Coalition, a group of local employers; and the Jacksonville Chamber of Commerce's Military Issues Committee (MIC) all offer support for employers who want to hire veterans.
THEY HAVE THE RIGHT STUFF
Employers seeking to hire for warehousing and logistics jobs may be surprised at how many military veterans are knowledgeable about those activities. Overseas-deployed personnel, for instance, have extensive experience managing the accountability of equipment and assets across several locations, says Jason Dozier, veteran transition specialist at the nonprofit Hire Heroes USA and a former U.S. Army officer who served in Iraq.
"Even veterans who may not have an extensive background in logistics have broad experience with freight management and distribution while overseas," Dozier notes. For example, a typical experience for an infantryman in Iraq would include the inventorying, containerization, and loading of assets at a forward operating base, and then securing and escorting those assets to a distribution hub, he says. Other personnel would manage and supervise the distribution operations of unimproved airstrips, field logistics terminals, shipping docks, warehouses, and other facilities.
Similar processes apply at military installations here at home, so domestically deployed veterans also have an understanding of operations, logistics, and the allocation and maintenance of military assets, Dozier says. Vets often are certified as forklift operators, and many are trained in the maintenance and operation of rough-terrain forklifts that can handle loads weighing up to 10,000 pounds. Furthermore, some military personnel know how to use tools like the Army's Logistics Support Activity (LOGSA) system, which analyzes logistics data and information, and are schooled in Lean Six Sigma. (Click here to read Dozier's commentary on why military veterans make great warehouse employees.)
But military veterans have a lot more to offer than hands-on experience. "They have skills we're all interested in: good team leadership, a strong work ethic, adaptability, and the ability to solve a problem on the spot, often under time pressure or duress," says Jeff Rufener, president of Toyota Material Handling U.S.A. Inc. (TMHU). TMHU offers veterans a discount on its forklift operator safety training, and through its "Giving Veterans a Lift" program is working with its dealers and Hire Heroes USA to train ex-military personnel as lift truck service technicians. After three months on the job, the dealer and TMHU make matching donations in the vet's honor to the nonprofit.
The military develops officers' skills in planning, setting objectives, evaluating results, and training subordinates. Every member is trained in leadership, and many veterans have been put in leadership positions early in their careers, says Aaron Bowman, a senior vice president at the economic development agency JAXUSA Partnership of Northeast Florida. "Veterans know how to give and how to receive orders," says Bowman, a retired Navy officer who began his career as an aircraft carrier pilot and capped it with a stint as commanding officer of a naval station.
Personnel who stayed in the military beyond their initial contract probably have led a team, a platoon, or a functional group—something outside of an individual-contribution role, says Ed Tobon, director of staffing for Ryder System Inc. As a result, "compared with their civilian counterparts of a similar age, they bring a lot more 'soft' skills," says Tobon, a commander in the U.S. Navy Reserve who served for more than 20 years in the Navy, including active duty as a pilot and a recruiter. Since 2010, Ryder has participated in the U.S. Chamber of Commerce's "Hire Our Heroes" initiative and has pledged to hire 1,000 military veterans by the end of 2013.
Here's another reason why vets are a good fit for logistics and warehousing: Because military operations focus on achieving specific, definable objectives, military personnel will look for resources to accomplish a logistics mission and are driven by outcomes. "The team-based, mission-driven logistics operations in our civilian society, with their focus on specific deliverables, are as closely aligned with military activity as any in private industry," says Mike Echols, Ph.D., executive vice president of strategic initiatives and of the Human Capital Lab at Bellevue University in Omaha, Neb. The nonprofit Bellevue offers a special academic program to prepare military veterans to transition to the private sector and partners with the Defense Acquisition University to offer degree and training programs.
Dick Lucas (left, as a new recruit in 1978) was able to apply the skills he learned as an Air Force aircraft hydraulics and electronics technician to his new job working on high-tech forklifts at PennWest Toyota Lift.
ADVICE FROM THE FRONT LINES
For many veterans, the transition to the private sector environment goes smoothly. Dick Lucas, a service technician with the lift truck dealer PennWest Toyota Lift and the first "graduate" of Toyota's hiring program, found that the adaptability and the skills he acquired in the Air Force as an aircraft hydraulics and electronics technician were invaluable when he began learning how to service today's high-tech forklifts. His experience with parts ordering and documentation also helped him adjust to the system at Toyota, he says. Now, Lucas is paying it forward: He's taken under his wing a recent hire, who was injured in Iraq, and has retrained him as a lift truck technician.
But there are some differences between the military's approach to employment and the private sector's expectations that can affect vets' ability to succeed in private sector jobs. For example, veterans are used to a dynamic and challenging environment. "Many veterans do not know the meaning of a traditional 40-hour week, so having them involved in an organization that offers a challenge and seeks constant improvement is a requirement," says JAXUSA's Bowman.
Military and civilian vocabulary differ significantly, says Tom Stephanic, PennWest's fleet facilities and inventory manager, who served as a track and wheel repairer in the Army. "I didn't understand some of the terminology the civilian workforce used. For example, they called it a 'purchase order,' but I was used to a 'document number.' It's the same thing, just a different name ... but it can affect the way people transfer knowledge. People assumed I knew what they were talking about." Unfortunately, he says, an employer might see this as a weakness or a lack of understanding instead of the bridgeable communication gap that it is.
The way military personnel communicate with superiors can be very different from the approach favored by the private sector. "If the hiring manager is perceived to be higher ranking, then you are likely to get 'yes, sir, no sir' responses rather than the open dialogue you want," Tobon says.
Their experience and training discourages military personnel from questioning superiors. "They know their unit is one part of an overall mission plan and that they need to carry out their assignment within that mission," Echols observes. "They're good problem solvers, but they don't challenge authority. You won't hear a veteran ask, 'Why do we do it this way?' Over time, yes, but not at first."
How to overcome veterans' reluctance to blow their own horns or to engage in an open dialogue with the boss? Echols says they may need to be taught what the private sector wants. That's why Bellevue University has developed its three-semester "Cornerstone" curriculum to help veterans learn how to manage that transition. The curriculum includes courses on managing change, technology and modern society, well-being and personal finance, and personal communication skills. "Cornerstone is designed to help them learn the language of decision making in a civilian setting," Echols explains.
Ryder's Tobon suggests helping military personnel prepare for the interview, as well as training hiring managers and human resources professionals in how to break the ice and handle the nuances they might encounter when talking to a vet, especially one who is transitioning from active duty. It's also important to "onboard" properly, helping new hires assimilate into the corporate culture. That includes making hiring, training, and promotion policies clear—it can be discouraging for someone who's already been in a leadership position to have to work their way up through the ranks again. "For recently separated vets, it's their first exposure to corporate America, so you need to make sure your onboarding program is solid," he says.
That can include being flexible about medical appointments for an injured vet, and recognizing that veterans, especially those who have been in combat, may find it hard to adjust to business routines after months or years of dangerous duty. Similarly, it's important to recognize that they may be dealing with different stresses and medical issues than other employees. (See the sidebar "PTSD: The elephant in the room.") Pairing up a new hire with another vet who's been through the same experience can be helpful, too.
Echols says employers who are considering hiring veterans should not be put off by the extra effort it may take to help them succeed in the private sector. Instead, think of it as a worthwhile investment in the future. "When the baby boomers are gone, we will need new leaders," he says. "Military veterans have all the attributes and character of people who can be leaders. That's why hiring companies should be interested in the development of these individuals. They should be thinking not just about what they can do today but about what they can be tomorrow."
PTSD: The elephant in the room
When it comes to hiring military veterans, the "elephant in the room" is post-traumatic stress disorder, or PTSD. Though difficult to discuss, it's an issue that can't be overlooked: About 20 percent of exiting military personnel either have PTSD or some degree of traumatic brain injury, according to Mike Echols, Ph.D., executive vice president of strategic initiatives and of the Human Capital Lab at Bellevue University in Omaha, Neb. Nonprofit Bellevue offers a special academic program to prepare military veterans to transition to the private sector.
Being in a high-stress, adrenaline-filled environment day after day "rewires the brain," so that a combat vet may continue to be in a high-adrenaline state after returning to civilian life, Echols says. Sudden, loud noises and other unusual or unexpected situations may trigger a reaction or anxiety in the individual. In that case, the vet may simply have to walk away for a short time to calm down and recalibrate.
In Echols' experience, employers can help by first doing some research and learning about the condition. He cautions against making assumptions based on sensational news stories or hearsay. Reach out to any affected employees and make sure they understand that you are not judging them, that their medical condition will not affect their employment status, and that you understand and support their need to get medical treatment and/or counseling to help them adjust to the civilian environment. And take advantage of the information resources available from the Veterans Administration and other organizations that assist with the military-to-civilian transition.
"The dilemma for employers is that we know it's the right thing to do to hire vets who risked their lives for the country," says Echols. "But we have to understand that they risked more than their physical lives." He urges employers to invest time in learning about the condition and how to accommodate employees who have it—just as employers make accommodations for workers with other chronic medical conditions.
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."