David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
October is National Disability Employment Awareness Month. It's a time each year when Americans recognize the important work being done by our fellow citizens with disabilities. At Lansing, Mich.-based Peckham Inc., however, that recognition takes place all year long. Peckham is a nonprofit vocational rehabilitation organization that advances employment opportunities for people with disabilities. Its operations include a third-party logistics services unit.
As Tom Minich, Peckham's vice president of logistics, explains, "The talents and skills of employees with disabilities are what fuels and maintains our company's success as an organization." He spoke recently with DCV's editorial director, David Maloney, about the third party's operations, the benefits of hiring the disabled, and how other companies can get started with their own hiring program.
Q: Can you tell us about Peckham and your commitment to providing employment opportunities for people with disabilities?
A: Peckham is a nonprofit vocational rehabilitation organization that specializes in training, employing, and preparing individuals with disabilities and other barriers to employment for workplace success. We believe that people with disabilities deserve the right to work and the right to choose where they work.
Peckham operates five social enterprises—supply chain solutions, business services, environmental services, apparel manufacturing, and Peckham Farms. We choose to work with customers that embrace diversity and community, and believe in the potential of all individuals.
Q: Why did you choose supply chain as one of your company's focused industries?
A: We conduct town hall meetings periodically to ask our work force what they would like to see in the future. Warehousing was one of the lines of business where we could effectively employ people with significant disabilities using technology.
Peckham has six warehouses totaling 1.4 million square feet of space, all in Lansing, Mich. From storage, to contact center, to "pick, pack, and ship," we are a one-stop logistics and fulfillment center.
Q: Who are your customers?
A: We are doing logistics support for the Defense Department, specifically the Defense Logistics Agency (DLA) and the Army.
One of the operations is a repair facility for the Army's Organizational Clothing and Individual Equipment division. Peckham receives, launders, repairs, and stores thousands of items. We also stock more than 8,000 items, primarily clothing, for Navy and Coast Guard service members worldwide. Peckham ships an average of 1,500 orders each day to over 40,000 customers.
Q: Can you talk a little about the diversity found in your work force?
A: Peckham is a very diverse organization. Nearly 80 percent of our 2,500 employees have one or more physical, mental, or emotional disabilities. We are very culturally diverse, with nearly 30 languages being spoken and individuals representing more than 50 different cultures. Our supply chain solutions social enterprise employs more than 250 employees at the six different locations, and more than 97 percent of those workers have one or more disabilities. For example, among the supply chain associates, we have people with psychiatric disorders and emotional impairments, physical disabilities, developmental and learning disabilities, autism spectrum disorders, visual and hearing disabilities, and traumatic brain injuries.
Q: Can you provide some examples of the work that people with disabilities perform in your distribution centers?
A: Currently, 97.5 percent of all direct labor is done by persons with disabilities. These functions include receiving, storing, picking, shipping, repackaging, inspection, washing, drying, repairing, and classifying/reclassifying product. There have also been individuals with disabilities who operate in supervisory roles.
We have experienced amazing results with this work force. There are studies that show that people with disabilities are more reliable, more loyal, and more engaged than other workers, yet this is one of the most untapped resources for talent by employers because of stigma, fear, myths, and misconceptions about cost and training, or plain ignorance.
Peckham has a very high retention rate with this work force, currently 96.5 percent. Our unplanned absence rate is also very low and generally runs between 0.8 and 1.8 percent.
Q: Did you need to adapt your processes to accommodate their disabilities?
A: No. We believe in fitting the job to the employee and individualizing the work experience for every employee whether that person has a disability or not.
There are a few jobs that were carved out, but the cost from the carved-out position was neutral when compared with the savings elsewhere. An example would be wrapping pallets. Peckham has automated stretch wrappers, but a person is still needed to attach the stretch film to the pallet and start the machine. Our forklift drivers were doing this and were having to get off and on their vehicles multiple times an hour, which reduced their productivity.
We hired a visually impaired worker who now operates several stretch wrap machines simultaneously, which added a cost. But once we added that worker, the productivity of the forklift operators almost doubled, making this a cost-neutral or cost-saving initiative overall. Most accommodations can be done in this way, where there is little to no cost but the return on investment is high for all parties.
Q: Do you think concerns about the cost of accommodations keep employers from hiring workers with disabilities?
A: I do, but our experience is just the opposite. There is a myth that all people with disabilities require job accommodations, yet studies show less than a quarter of employees with disabilities need accommodations.
There are many simple accommodations that we make for workers that cost us nothing, such as schedule adjustments. Investing in our workers, providing the resources and support they need, gives us employees who love their jobs and appreciate the opportunity they were given, in turn doing outstanding work and remaining loyal to our organization.
Q: Do you have any concerns for the safety of workers with disabilities?
A: Peckham does not have any unique safety concerns outside of what any other employer has. We monitor incidents just like everyone else. We invest in training our workers well and monitor any shifts in data.
For instance, we have many hearing-impaired forklift operators. We speak with many employers who will not hire hearing-impaired forklift operators, as they cannot hear the backup sirens. We have installed strobe lights on all of our equipment so that in addition to a siren, each truck has flashing lights to alert other employees that a truck is about to enter. I would bet our incident rate is lower than at most other warehouses. It's all in the training.
Q: What must employers do to create an inclusive culture?
A: As employers, we are at an advantage if we shift our thinking from looking at people with disabilities as a burden to thinking about them as a strength for the work force. Disability is just another part of diversity. Every employer should want a more diverse and inclusive environment. We believe that inclusion drives innovation.
Q: What advice would you offer employers looking to get started?
A: Partner with your local vocational rehabilitation organizations to recruit, hire, and retain individuals with disabilities. There are many organizations similar to Peckham that are looking to partner with employers who want to make concerted efforts to hire people with disabilities.
Start small and remember it's a journey. We don't have it all figured out and probably never will; but constantly listening, asking questions, and working toward the goal and mission of treating everyone with respect will yield incredible results.
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.”
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
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.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.