It is OK to celebrate improvement, new applications for old tools, and the march of progress. But let's save the proclamations and euphoria for those few genuine breakthroughs.
Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
One manifestation of living long is that one has seen, if not everything, at least many things. A manifestation of being on the younger side is that many things are being seen for the first time, and with no other point of reference may, among many options, be categorized as:
Denounced in horror, as the work of Satan
Embraced with gusto, as the next big thing
Ignored, as mere chatter
Heralded as game-changers, as kinks are worked out and weaknesses are shored up
Overshadowed by the simultaneous arrival of other solutions in search of problems.
MARCHING TO THE HEAD OF THE PARADE
Promoting the apparently new concept draws in armies of fervent supporters. The trade press is always on the lookout for compelling and provocative content. Academics do not want to seem to be run over by the bandwagon. Earnest and brilliant practitioners extol the virtues and vision of whatever's next and trumpet the promise and potential of the latest and greatest.
Consultants, of course, cannot afford to suffer body blows to their images if they don't appear to be both wise and current. And industry observers and commentators also are compelled to display relevance, along with brilliant mating plumage.
Research is conducted, surveys are carried out, results and conclusions are published. But take a moment when the next PR tsunami wipes out rational discourse. Is the concept really new? (Aha!) Or simply more effective or efficient (e.g., lower-cost, faster-speed mobile wireless access)? (Duh!)
WHAT'S OLD IS NEW AGAIN
News flash! As we've frequently reported, Sears was doing business-to-consumer (B2C) order fulfillment from a megadistribution center over a century ago. (As was Aaron Montgomery Ward.) The only differences of significance from today? U.S. mail as input vs. e-mail or mobile entry. Physical delivery by a third party unknown today (Railway Express) vs. FedEx, UPS, or, believe it or not, the U.S. Postal Service.
Shared transportation, with either competitive or complementary independent companies, has been significantly enabled by new information technology capabilities and a renewed emphasis on cooperation and collaboration in new-century business models. Of course, 40 years ago, we called this aha! practice "pooling." Duh!
In the day, we lacked the power and scope of planning and execution software. There was no warehouse management software, for example. But we still kept meticulous inventory records (on cards), planned pick waves as best we could by thinking through needs and priorities, and slotted products, sometimes based on affinity, sometimes on source, and sometimes on throughput objectives, and sometimes on customer demand priorities. To be honest, it was not easy, and it was extremely difficult to replicate day after day. But it wasn't that we didn't do these things in an age in which fire was a new and precious resource, and we created art by tracing 'round our hands on cave walls.
We have, it seems, evolved through a series of developments in which the rising generation cries "Aha!" and the old codgers sit at the fire and mutter "Duh!" Occasionally, someone in either camp will see the light and make the connections. That's when the Homer Simpson "D'oh!" kicks in.
WHEN AHAs COLLIDE
In the early days of radio-frequency identification (RFID), which some think we're still in, the literature was full to overflowing, even littered, with pretentious writing positioning its authors to be recognized as prescient. Those enamored of other hot concepts focused on the weaknesses of the emerging technology—challenges in wet environments, conquering metallic obstacles, etc. They said, in essence, "Readable technology in or on a package of chewing gum? Not in my lifetime—or yours! Cost will stop this dead in its tracks."
Guess what, again? In their lifetimes, the moisture and materiel kinks have been largely worked out. Chip costs have plummeted. RFID is no longer limited to high-cost/value applications, such as automobiles, E-ZPass tolls, mink coats, and lift tickets at pricey Alpine retreats. The future is now, and something even brighter is probably just around the corner.
HOW EVOLUTION WORKS
But, face it. RFID is just the latest version of "automatic identification." One beginning was the sudden appearance of strange markings on the sides of railcars and continued into the ubiquitous bar code that has gingerly worked its way onto everything under the sun, and from hesitant limited usage, even rejection, to a prime source of real-time information for businesses.
So, the concept is rock solid and mature. The implementation has been 1) made possible, and 2) continually evolving, owing to technology.
A PARALLEL?
Is there a lesson here, a learning that is useful beyond the parable? An old puzzle for children was the riddle involving the fox, the rabbit, and the lettuce. The challenge for their master was to take them across a river in a boat that would hold only two: the master and one other.
The rabbit cannot be left alone with the lettuce, lest he eat it all up. The fox cannot be left alone with the rabbit, lest he eat it all up. The fox can be left alone with the lettuce, but what's the fun of that? So, how can the master get all three—and himself—across the river?
If we change the cast, the **ital{dramatis personae,} to something completely different, will the options change? Let's say that the boss has a box of apps, a techno-geek, and a sales superstar.
The techno-geek cannot be left alone with the box of apps, lest he bug them all. The sales superstar cannot be left alone with the techno-geek, lest he sell all the apps to the geek. The sales superstar can safely be left with the apps because he doesn't really know how to use them.
AT THE END OF THE DAY
Even with the updates, the core of the riddle does not change. And so it is with many of our Ahas. We have very, very few completely new ideas to contemplate, either in our supply chain and logistics arenas or in life. We do have, thanks to technology and a bent for continuous improvement, many core concepts that grow in power and usefulness over time (while retaining their core concepts and objectives).
It is OK to celebrate improvement, new applications for old tools, and the march of progress. But let's save the coronations, jubilees, proclamations, and euphoria for those few genuine breakthroughs—and begin the work of evolving them to new levels, too.
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."