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.
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.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.