Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
After more than 18 months of theorizing and tinkering, Maersk Line and IBM Corp. today announced the formation of a joint venture to apply blockchain technology, a distributed ledger that creates a transparent and indelible trail of each transaction, to global trade and transportation.
The venture, which had been rumored for some time, will use blockchain to, in the companies' words, "provide more efficient and secure methods" for conducting global trade. Today's announcement means that "a beta version involving all players of the ecosystem along a specific trade lane can be launched," said Michael J. White, former president of Maersk's North American division and the head of the new venture, in an email today.
Copenhagen-based Maersk, the world's largest container line, and IBM, based in Armonk, N.Y., began work in June 2016 to build technologies that would be relevant to the process. Since then, various corporations, marine terminal operators, and government organizations such as the U.S. Customs and Border Protection have piloted the platform.
The venture, which will be open for members across a trading network to join, will allow Maersk and IBM to market the process to a broader range of commercial and government interests, the companies said. The venture is subject to various government regulatory approvals, and it has yet to be named. It is expected to start six months after regulatory clearance is received, the companies said.
The companies said they are encouraging other shipping lines to join, noting that container flow data considered proprietary would not be visible unless the ship line wanted it to be. In an interview today at the National Retail Federation's (NRF) annual convention in New York, Karl Haller, partner and global leader for IBM's Consumer Center of Competency, compared the joint venture's platform to a big, distributed database with functionality constantly enabled so no user can change any details without those actions being logged for all to see.
Blockchain's name comes from parties in a transaction adding "blocks" of information to the wider chain. The blocks identify as much information as the stakeholders deem necessary for the transaction to progress and be completed. Fraudulent activity would be virtually impossible because the transaction would represent a single view shared and witnessed by all participants. A transaction can move forward free of hackers and the need for so-called trusted third parties such as lawyers, bankers, and other intermediaries who've historically filled overseer's roles.
At the core of a blockchain's appeal is the development of self-executing, or "smart," contracts that would not require a third party's validation. Contracts could be converted to computer code, stored, then replicated on the system and supervised by a network of computers that run the blockchain. Smart contracts enable the exchange of money, property, shares, or anything of value in a transparent and conflict-free way, while avoiding the services of a middleman, according to supporters of the blockchain process.
Originally utilized to support the Bitcoin crypto-currency, which buyers and sellers use to execute transactions outside of the normal banking ecosystem, Blockchain is gaining interest across multiple industries, not the least of which is transportation and trade. The "Blockchain in Transport Alliance," (BiTA), a group created in the U.S. to develop industry standards, has received 975 applications to join and has 175 members, according to Craig Fuller, a transport IT executive and the group's co-founder. It is by far the largest industry-specific blockchain association, Fuller said.
Maersk and IBM said blockchain could revolutionize the ocean shipping industry, which moves about $3.2 trillion of goods worldwide and which has been a notable laggard in digital development and implementation. According to the companies, the overreliance on paper transactions has driven up the costs of processing and administration to as high as 20 percent of the costs of transportation.
According to White, most inefficiencies are caused by "information silos and ineffective data and documentation sharing. For example, information at origin was not always known by the destination customers in a timely manner." Missing documentation has also attributed to delays, a scenario that could be avoided with a blockchain-enabled program in full swing, White said.
Connor DiGregorio, a procurement research analyst at supply chain market research firm IBIS World Inc., said the databases of parties involved in a transaction are stored separately, which requires the exchange of paperwork. The IBM-Maersk platform will "allow easier coordination of documents on a shared distributed ledger, eliminating much of the need for physical paperwork," said DiGregorio in an email. "Additionally, through the distributed ledger and with the use of smart contracts, approvals and clearing through customs can happen much faster, reducing the time goods are processed through ports and other checkpoints."
Inna Kuznetsova, president and chief operating officer of Parsippany, N.J.-based Inttra, a multicarrier pOréal that tracks the status of more than 40 percent of the world's ocean containers, said the success of the IBM-Maersk venture will depend on the companies' ability to attract a large number of shippers and customs authorities to the platform. "Blockchain represents an attractive means to build a distributed network," Kuznetsova said in an email. "Yet it requires certain changes to the IT and business process of each company joining the platform, in addition to adopting common standards. Both historically represent a challenge in shipping."
She added that participants with multilayered operations, which represent many in the sea carrier trade, will also need to decide if they want to invest in participation in many networks or wait for a true standard to emerge.
Haller of IBM said the venture is all about inclusiveness. "IBM wants to work with standards and regulatory bodies to make sure all these blockchain networks are interoperable," he said at NRF. "We're working to jointly develop a solution that will work for anyone in the industry that wants to be a part of it. Then it will go from being about blockchain to being a solution for global trade."
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."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.