Optricity's Sheila Benny has made it her personal mission to give back to the supply chain community through mentoring young people and leading an industry association.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
In one of her last acts as president of the Warehousing Education and Research Council (WERC), Sheila Benny stood before attendees at the group's 2016 annual conference and urged them to remember that they and their supply chains help save lives. After all, it is supply chains in general that ensure that the necessities of life—such as food, medicine, water, clothes, and fuel—get to the people who need them.
Benny, who is an executive vice president and founding member of the slotting optimization software company Optricity, tries to spread this message wherever she goes, especially through her work in industry associations and in mentoring the next generation of supply chain leaders.
Benny's own first mentor was her father, an engineer with the space program. He encouraged her even as a small child to tinker with nuts and bolts, and engaged her in what he called "big picture talks." But side by side with her engineering genes was an intrinsic desire to help people and give back to the community.
Through her career in supply chain management—first with the consulting firm Tompkins Associates and later with software companies like Performance Analysis Group, Manhattan Associates, and now Optricity—Benny has found a way to engage this analytical "big-picture thinking" side for the greater good. That the supply chain can provide an avenue for both is an insight she tries to share with young people in general (and young women in particular) who are considering careers in the field.
DCV Editor at Large Susan Lacefield recently caught up with Benny by phone to talk about her career, the value of industry associations and mentoring programs, and the ongoing fight between her left brain and right brain.
Q: I understand you graduated with a degree in industrial engineering from North Carolina State. How did you first become involved in supply chain management, and what attracted you to the field?
A: Probably like many people, I just happened into the field. I had the good fortune of being steered into getting a degree in industrial engineering by my father, who was himself an engineer. But my heart as a young person was really in the nonprofit world. I really wanted to make my mark in helping people, and I was passionate about volunteer work. Once I got into engineering, I found I really liked the people and process work. I found out I had a little more of an engineer in me than I realized.
After undergrad, I went directly into the M.B.A. program at [the University of North] Carolina and did my summer work with Jim Tompkins [founder of the supply chain consulting company Tompkins International (Tompkins)]. Once on board with Tompkins, I had the good fortune to work in areas beyond the scope of traditional engineering work, like helping Jim publish his books and market his brand. Then, I had the chance to support Tompkins' expansion internationally. Because of that, I gained broad industry experience, and my career was born.
Jim used to say he loved watching my left brain fight with my right brain, and I guess that's me in a nutshell. I always was an engineer at heart, ever since I was a kid. My dad worked in the space program in Melbourne, Fla. He would come home from Cape Canaveral with these giant nuts and bolts, and I would play with them as a toddler. I guess I was an engineer from the start, but I had to find myself, and I found myself in supply chain.
Q: I love the idea of your left brain fighting with your right brain. Can you explain what that's about?
A: I think it's about really loving the people side of things but also having a very analytical approach to life and problem solving. Supply chain allows you to be very analytical while taking into account real-life challenges that people face every day. That's definitely where I function best, where the two intersect.
Q: What continues to attract you to the field today?
A: One of the things I love best about being in supply chain today is working as an entrepreneur [with the warehouse software company Optricity]. I have the opportunity to be a leader and be at the forefront of technology. Many people outside of supply chain don't understand that this is very much a technology field.
Upon returning to the industry 11 years ago [after a hiatus working in another field], my partners [Dan Basmajian and Chuck Grissom] and I recognized that slotting optimization had not kept up with the pace of change. Instead, other technologies had taken a front seat in terms of what was driving the market. Our software initiatives sparked the slotting market space to come alive again. That was exciting. It's a great industry if you want to be a market creator, a market maker, and a technology driver. If you want to make a difference in the world, you really can find that space in supply chain.
Q: Over the years, you have been heavily involved in the Warehousing Education and Research Council (WERC), including serving as the group's president. Why do you feel it is important to become involved in industry associations?
A: Industry associations provide a platform to serve our professional communities. Associations support our professional development and provide mentorship opportunities to people who are just starting out or making a career change. That's critical if we are going to develop the resources needed in the future. From an economic standpoint, we have to grow human capital resources or the industry will be shorthanded in the future. From a social standpoint, [mentoring and helping young professionals develop their careers] is a fundamental responsibility, in my opinion.
From my very earliest days, I have been a person who cares about community service. Industry associations offer the opportunity to give back, a place where I have a true passion. WERC offered a merger of all of those areas for me.
Q: You've mentioned your experiences with mentorship. Can you talk a little about mentoring and its benefits?
A: I think of mentors a little differently than other people do. I don't think of mentorship as being linear in nature, where the mentor is always a senior person. For example, I might receive mentoring from a younger person in my organization or provide mentoring to a colleague in a comparable position. To me, mentoring can be delivered over time or just in nourishing moments. Mentor moments are "aha moments" that provide a new piece of information or inspiration that requires you to look at things with fresh eyes; that insight can come from a younger person, someone outside the industry, or from someone like my daughter, who's one of the strongest and most influential people I know.
Q: How have things changed since you started out in logistics and supply chain management?
A: Certainly there are more women in the industry today. I am thrilled to have fantastic leaders who are women in my own organization as well as who serve on the board of directors with me at WERC. And I'm also delighted to have met influential women like Nancy Nix through the AWESOME [Achieving Women's Excellence in Supply Chain Operations, Management, and Education] network [where Nix serves as executive director]. These leaders have inspired me to be my best self and think about what kind of role model I want to be.
Equally, men in the industry today are inspiring change. Today, we have men and women who are collaborating and encouraging all of us to be our best selves and give more to the industry. I think we have more people looking out for each other.
Q: What do you think we can do to encourage more young people in general, but specifically young women, to pursue leadership roles in supply chain management?
A: One-on-one education is key. We must communicate, educate, and activate the next generation so they understand what opportunities are available in the supply chain field.
For example, we must be active in industry associations, reach out to our own networks, and better communicate professional opportunities. We have to make sure we don't get so busy in our careers that we lose sight of our role in educating the next generation. Among other things, this means creating awareness among talented young women that there are exciting technology opportunities in the supply chain field, like optimization software or data analytics, to name just a couple. Otherwise, we will be missing out on the best and brightest. Education, activation, and one-on-one support: That's where the rubber meets the road.
Q: How can a person find ways to provide this one-on-one support?
A: This type of dedicated support really comes down to one-on-one purpose-driven "mission work." For example, I make it a proactive goal of mine to engage with the next generation. I'm involved with the Global Supply Chain program advisory council for Wake Technical Community College, a local school that has a logistics and distribution-focused curriculum. I am actively connected with both the students and faculty, and provide input regarding industry needs. In addition, I proactively seek the best and brightest talent for my own organization, Optricity.
I am personally committed to reaching out and connecting with people who have both creative and analytical minds to encourage them to consider the distribution and supply chain field. Each one of us has to find our own niche, whether that's by taking a leadership position in a professional organization, developing a one-on-one relationship with a young person, or simply exchanging mentor moments whenever possible. Support is activated when each of us as individuals converts our own commitments into habits.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."