In our continuing series of discussions with top supply chain company executives, Greg Gantt of Old Dominion Freight Line shares about his company's culture and how it strives to help its customers keep promises every day.
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.
Greg Gantt is president and CEO of Old Dominion Freight Line (OD). Gantt joined the company in 1994 as a regional vice president and was subsequently named senior vice president of operations, then executive vice president and chief operating officer. His operational focus has propelled Old Dominion to a multiyear performance of greater than 99 percent on-time delivery and a cargo claims ratio of 0.5 percent. Both are industry-leading benchmarks. Gantt earned a degree in health and physical education from Appalachian State University, where he was a member of the university's intercollegiate wrestling team. He remains a fan of NCAA wrestling as well as Major League Baseball. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: Old Dominion has consistently ranked among the top LTL (less-than-truckload) carriers in the nation. To what do you attribute that success?
A: We have a unique culture at OD. We have the best and most committed team in the industry. Our people are committed to servicing our customers. All employees are bought in to provide exemplary service far above and beyond our competitors. We call it "Service 2.OD." In addition, our management team is tremendous; we are experienced, and all are on the same page, making a strong team. We have a strategy, and we execute on it daily. We believe we are far more disciplined than the carriers we compete with on a daily basis, which leads to our success.
Q: Your company motto is "Helping the World Keep Promises." As president and CEO, what does that mean to you?
A: Helping the World Keep Promises means we will help our customers keep their promises to their customers. Every shipment we handle is an opportunity to impress two customers (our customer and our customer's customer).
Q: Old Dominion was named to Forbes magazine's 2019 Best Employers List. What makes your company a desirable place to work?
A: We were recognized because of our culture, and our employees are the heart behind that. People come to work at OD and have the opportunity to create a life-long career. I am the perfect example of that. I came to OD in 1994 and served in a handful of positions throughout the company before being named CEO this past year. Inside OD, we refer to ourselves as the "OD Family," because we look out for each other, we have a mutual respect for one another, and we have a passion for the business and our mission to provide the best service to our customers. All of this makes OD a place where people want to work every day.
Q: What are some of the ways you attract and maintain talent?
A: One impactful way that OD attracts and retains talent is by word of mouth. We have a great reputation that we have built over our 85-year history. We provide on-the-job training programs to help and encourage our employees to grow and develop their careers, and we have a strong pay and benefits program. We've found that many of our employees previously worked for other carriers and heard about our culture, career offerings, and benefits, so they eagerly applied to work at OD.
Q: Old Dominion is involved in many charitable causes, including youth baseball. Why is that important to your company values?
A: We think it's essential to be a good corporate citizen. We have 235 service centers across the country, and our OD Family lives and works in all of these communities. As a company, we want to make each community a better place than when we first arrived. We love being able to give back and help others; it's part of the OD Family spirit that drives our culture and business. A few of the larger charities we work with are the United Way, American Red Cross, and Salvation Army. Giving back is who we are.
You mentioned youth baseball, and that brings to mind a fun example of our charity work. We're the Official Freight Carrier of Major League Baseball and a few years ago created a baseball-filled trailer to travel around the country, making stops at various MLB stadiums. This year, we removed the baseballs from the trailer and wanted to give them a second life. We donated more than 12,000 baseballs to "Pitch in for Baseball & Softball," an organization that gives boys and girls access to recreation and contributes to positive youth development by providing baseball and softball equipment to children around the world.
Q: You have personally been involved in collegiate wrestling. Are there lessons from the sport that translate to your leadership role at Old Dominion?
A: Yes, wrestling is a lot of hard work as is LTL trucking. In wrestling, you have to work hard every day, and you have to be consistent. There are no shortcuts. There are no quick fixes or gimmicks. Hard work and determination win every time. This directly relates to my philosophy as a leader and the way we operate at OD.
Q: Are there any new initiatives OD is undertaking that you wish to discuss?
A: OD has a strategic plan that is well documented that will help us continue to grow and gain market share. We are the premier LTL carrier that provides a premium service for a fair price. We're continuing to invest in our fuel-efficient fleet, 235 service centers with more openings and renovations coming in 2019, and most importantly, our people, with training and career development to help them succeed and provide better service to our customers. We also just announced a formal partnership with the American Red Cross as a member of its Disaster Responder Program, where we made an annual pledge of $250,000 to help the Red Cross prepare in advance of disasters to help meet the needs of people affected by disasters big and small.
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.