Though it runs counter to most supply chain professionals' nature, there's merit in letting the world know how good you are—that you and your team deliver the goods, anticipate challenges, and head off problems in the making. But it's important not to overdo it.
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.
The buzzword "optics"—meaning "appearances," or the way in which an event or course of action is perceived by the public—has wormed its way into conversation, analysis, criticism, and haranguing over political initiatives seemingly overnight. One may only hope that it fades as quickly as "at the end of the day" and other sloppy language attempting to pass itself off as deep insight and wisdom.
It does seem, though, that for the time being, we will be both seeing and hearing about optics from talking, if not thinking, heads on every television channel except perhaps Nickelodeon. Regrettably, leaders—political (no, that is not an oxymoron, although it could be a moron of a different sort), business, and other—are attempting to master the optics of situations rather than their substance.
Optics can be useful and beneficial. We often need prisms through which to bend light for better interpretation. Microscopes help us to see and work with impossibly small samples. Telescopes open windows to permit us to see farther—and farther back in time—than simply standing on a ladder allows.
But too often, public optics today are being used as a substitute for reality. Negative reactions to statements, initiatives, decisions, and actions are too easily blamed on the "optics" and not on authenticity.
A FALSE FAÇADE
In government, in the private sector, in social services, in education, optics rule. It is the large-scale equivalent of spending all one's time and money on putting up new drapes in the parlor while conveniently ignoring the cracks in the house's foundation.
Sooner or later, the buzzards will come home to roost. It's a vain hope that the water in the basement will drain away, leaving a new owner to deal with its recurrence. But among the ruins of a sharp focus on optics accompanied by a blind spot obscuring looming realities, there remains a time and a place for optics, not least in the supply chain management universe.
OPTICS AND THE SUPPLY CHAIN
We, by nature, are optics-shy. We are not much on, and aren't very good at, tooting our own horns. But as a profession, we really need to get better, to get downright good, at the optics of our situations.
Learning, even mastering, our optics is critical to personal success. It is also vital to the profitability and longevity of the enterprises within which we ply our magnificent profession. Here are a few examples to think about.
If you are a supply chain leader, your primary optic is visibility. Being there, being with the troops, gets you halfway up the hill all by itself.
Inclusion, providing visibility for the next generation of leaders you are developing, strengthens both you and your organization within the enterprise. If you toot their horns, consider your own horn tooted, too—without the annoying consequence of being seen as a braggart.
Your—and your company's—optics within key relationships is huge, for both you and the enterprise. You create win-wins left and right by making sure that your customers know, and see, that you deliver the goods, that you and your team anticipate challenges, and that, all together, you fix problems before they sink the ship with all aboard.
There is nothing wrong, and much right, in designating worthy key accounts as such things as customer of the year, valued partner, or preferred business ally.
At a more fundamental level, creating the optics that signal special relationships within your supplier community are critical to maintaining longstanding alliances, to receiving preferred treatment, to shoring up an extraordinarily reliable supply chain that benefits suppliers, you, and your customers.
Do not, in these processes, neglect the optics of how you communicate and show the contributions of the supply chain organization to the enterprise. Face it. Does the boss really care about perfect orders or on-time shipments, or order fill and stock-out consequences?
Of course not. He or she cares a lot about return on equity, about customer acquisition and retention, about finding the balance between capital investments and margins, about business continuity, and about happy smiling shareholders (whether the company is publicly or privately held).
Again, it is visibility, communication, and recognition that provide the optics that reinforce the basics of how you do business. Certificates, plaques, awards banquets, photo ops, and public expressions of success, of harmony, of service, of impeccable performance—all these create the right kind of optics.
Why the "right kind"? Because they are rooted in the reality of actual performance and accomplishment, with optics illuminating and brightening actuality.
WHAT COULD GO WRONG?
As long as the horse is in front of the cart, you will be OK in the conscious application of optics to your world. But overdone, optics can easily lose their positive impact and become occasions of disbelief or ridicule. You can only have so many preferred partners, so many customers of the year, so many employees of the month. Not every accomplishment merits a pizza party, or a press release, or a personal introduction to the customer's CEO.
Stay grounded in authenticity, relative impact, and thoughtful intentions for engaging in a situation's optics. Never create optics around a hope or intention. Never announce an outcome that is merely a hope or a plan or a target. Always wait for the accomplishment before recognizing its architects or working staff. The deck hand calling out "Land ho!" is not the same as wading ashore in the New World.
And if you succumb to the pressure that makes it attractive to create an optic to deflect attention away from inaction in a priority environment, or failure in basic execution of normal expectations, look over your shoulder, all day, every day, until the end of time. Buzzards will be coming for you. And I will be cheering them on.
OPTICS AT THE END OF THE DAY
So, as with so many things, optics can be a tool for good or the tool of those who are on a path to abuse. Created well, with proper intent, they can make our work lives richer and fuller, and more rewarding. Created with an intent to distort, misinform, or obfuscate, they can diminish us. How we use optics is up to us—to you, to me, to our leaders. We owe it to one another to call out those who choose the wrong path.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
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.