Though intended for drivers, the warning applies equally to business relationships. That is, what we think we see may not be a wholly accurate depiction of reality.
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.
If you can read that warning in your outside car mirror, you're not paying nearly enough attention to the core issue, driving without committing either suicide or manslaughter. But it is disastrously easy to become mesmerized by mentally Photoshopped images and contemplate the magnificence of a false—sometimes referred to as "enhanced"—image.
Business relationships are a little like that, too, in that what we think we see may not be a wholly accurate depiction of reality. And in the new age of collaboration, successful supply chain management demands robust, rock-solid, and really long-term relationships.
Those are not the last century's 3Rs of elementary education, but the new century's hallmarks of effective hand-in-glove, arm-in-arm, joined-at-the-hip planning, operations, and continuous improvement that make for happy customers, employees, and shareholders.
But even some really smart people don't get the essentials of how to build and maintain those intimate relationships that transcend mere opportunistic cooperation.
PSEUDO-SCIENCE AND THE STUDY OF RELATIONSHIPS
Some observation and writing in the field appears to have missed the lifeboat and is going down with the Titanic. A common failing among the sinking cynics is to examine a business relationship as if it were a fire. It gets lit; it catches; it roars to life; it stays hot for a period; it begins to fade; and it finally dies out, pretty much useless in the end stages even though technically still alive. Their typical scenario is to outline the stages of a relationship, which got me to immediately contemplating Elisabeth Kübler-Ross's stages of death and dying:
Stage I, Establishment. This is the initial connection, the friend or foe, fight or flight moment in which we decide whether to work and play well together or fight common foes at arm's length, with limited communications, closed minds, and protected, privileged information for our eyes only.
Stage II, Acceptance. Here, we mutually decide that the other has credibility as well as the competency, the access, the power, the judgment, and the breadth to get done what needs doing.
Stage III, Action. Action takes time to genuinely initiate, because, to be most effective, it must be based on trust, which takes a long, long time to be fully embraced (by both parties to a relationship). Broken or violated trust can, long-term, derail the relationship, but with sufficient competence, tasks can be completed, even if suboptimally. But the quality and effectiveness of the relationship can seldom return to the previous level.
Stage IV, Wind-Down. Inevitably, relationships dissolve over time. The deal was only for a year. The project is over. There are no more goals to meet. It's been fun, but the sun has long set, and all we have left are dying embers.
THE MISSING LINK
All those are essentially so, if one imagines the parallel of a fire that is lit and left to follow its own course. Many fires on beaches at sundown that fuel summer romances do, in fact, play out in about that way. But for those who are serious about fires—or relationships—it's a much different story. Remember the under-appreciated film "Quest For Fire," with Rae Dawn Chong? Fire was a wonder and a life-giving tool for early humankind, kept perpetually burning. One village let its fire go out and dispatched a team to venture forth to find new fire, without which the village would fail and disappear.
GOOD FIRE; GOOD RELATIONSHIPS
The stages outlined above make no sense in a world in which either fire or relationships are vital survival elements, and the inevitability of winding down relationships in that context is absurd. To stay with fire for a moment, if one is serious about a life-giving fire, it is observed, evaluated, and tended accordingly throughput its life.
Good tinder is used to enhance a good start. The best wood to be found is laid on the fire, and new fuel is added throughout its life—not too early and not too late. The placement of the original and the additional logs is carefully thought through. If a spot is not burning well, judicious application of air is used to help the flame sustainably engage that particular log.
In business relationships, increasingly in supply chain business relationships, good fires are being built with the objective of not inevitably winding down. We look hard within ourselves to find the right mix and match of team components to provide the tinder for a great Stage I, Establishment. We invest in bringing genuine talent to the table, with the right styles to match up with the other side and create a fast and positive Stage II, Acceptance.
We hire deliberately with values that support and enhance trust, and plan meticulously and creatively, to make Stage III, Action, effective in time, resources, and outcomes. Throughout, we assess the health of the relationship, the strength of the fire, and add as appropriate, new wood and/or blasts of air to make the fire and the relationship both strong and longer lasting. The objective, of course, is to not ever have to face the Stage IV Wind-Down. And constant care and feeding of the fire and the players in the relationship can be marvelously effective in delaying, deferring, or demolishing Wind-Down as a daily concern.
THE REALITY
Do relationships end? Sure. But not always, not early, not without a fight, and not inevitably. Does everybody get, and buy into, the perpetual relationship idea? Of course not. But the naysayers' numbers are shrinking as long-standing relationships continue to stand.
Is relationship management easy once you know how? No! It is hard work, takes incredible attention to detail, and eats resources for breakfast. But it is easier—and less costly—than losing a relationship partner and working like a rented mule to find a new one. Is it a matter of charm and personality? Not really, although a sunny disposition doesn't hurt. At the end of the day, trust is vital, competency is key, and a willingness to laugh is icing on the cupcake. Plus, a willingness to go out and put a log on the fire yourself can go a long way.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."