In our continuing series of discussions with top supply-chain company executives, Marc Althen discusses discusses Penske's role as a third-party logistics service provider and the market outlook for 2020.
Marc Althen is president of Penske Logistics. Althen began his career as a project engineer with Chevron. He came to Penske following Penske's 1988 merger with Gelco Truck Leasing, where Althen had served as a construction director. His first role with Penske was to manage the environmental services department. During the next 20-plus years, Althen took on positions of increasing responsibility, including vice president of environmental services and vice president of administration.
In 2004, he was named senior vice president of administration and procurement for Penske Truck Leasing. In that role, he was responsible for real estate, facilities, energy, telecommunications, vehicle supply, vehicle remarketing, and non-vehicle procurement.
Althen is a member of the Council of Supply Chain Management Professionals and sits on the board of Fleetwash, a company that is majority-owned by Transportation Resource Partners. He is also a board member for several charitable and cultural organizations in the Reading, Pennsylvania, area. He holds a bachelor's degree in chemical engineering from the University of Kentucky.
Q: For those not familiar with your company, can you describe the work of Penske Logistics?
A: We are a third-party logistics provider servicing the automotive, food and beverage, industrial, manufacturing, and consumer packaged goods industries. The majority of our business is operated throughout North America, and we provide six primary services: distribution center management, dedicated contract carriage, regional truckload services, transportation management, lead logistics provider, and freight brokerage.
Q: How do you view the current transportation market and the prospects for 2020?
A: We are cautiously optimistic. We know there is excess trucking capacity in the market, and therefore there are rate pressures. We are also still experiencing a truck-driver shortage, and at Penske Logistics, we are acting on strategies to ensure that we are hiring the best drivers available.
Today, we see more customers and prospects reaching out to us specifically around the main services we offer—transportation management, dedicated contract carriage, and distribution management. Customers are looking to optimize their networks in an effort to reduce their costs. We are always striving to exceed our customers' expectations, and that's what helps us build trust and win business.
Q: What are the advantages of coming to a company like Penske that offers both warehousing and transportation as well as brokerage and other supply chain services?
A: Shippers look to Penske Logistics for business outcomes—rather than products. They are seeking to better serve their customers, which includes their external customers as well as the internal customers or stakeholders that interact with their supply chain team and processes. They want to improve their cost of operations, as measured by KPIs and financial statements. Our ability to incorporate the people, skills, systems, and resources from across our various product lines into a unique solution to meet their very specific needs—ultimately, the ability to deliver a compelling solution—is what keeps them coming back to Penske.
Q: How are your technology investments at Penske helping you to better serve your customers?
A: The market for supply chain software is growing rapidly. Both established players and start-ups are enhancing their platforms and creating new offerings at a rapid pace. For shippers, off-the-shelf software is difficult to configure to meet the needs of their industry, and shippers are struggling to separate the hype from reality in the burgeoning tech space.
IT talent with experience in supply chain systems is very limited, and shippers' internal IT departments, while skilled, tend to be committed to implementing new digital strategies, not supply chain systems. Penske brings best-in-class platforms, speed of implementation, seasoned IT practitioners, and commitments to measureable results that supply chain executives find attractive.
Over the years, Penske Logistics has acquired and implemented the best commercially available software on the market. This is the same software any shipper or third-party logistics service provider can buy. However, Penske has taken additional steps to customize and develop a proprietary solution—the Penske ClearChain technology suite. We've drawn on our experience to invest in the right tools to drive visibility and insight into the supply chain. This includes portals, analytics, dashboards, scorecards and mobile tools. Penske developers have created dozens of supporting applications, informed by our experience working with customers. These apps are integrated with our core systems, offering users a seamless experience.
Q: You have a background working in environmental services. How have you been able to promote sustainability in your role as president of Penske Logistics?
A: We are constantly evaluating and implementing the newest and best technology to drive sustainability in our fleet and logistics operations. On a daily basis, we continue to optimize customer shipments in a variety of ways, and to operate and maintain cutting-edge trucks. That's why for the fourth time this decade, Penske Logistics was honored by the U.S. Environmental Protection Agency for its sustainability efforts, collecting a 2019 SmartWay Excellence Award in the Truck Carrier category. Penske Logistics also attained SmartWay awards in 2018, 2017, and 2013. We are one of 55 truck and multimodal carriers to receive this distinction, representing the best environmental performers of SmartWay's 3,700 partners.
Q: What value to you feel Penske brings to its customers?
A: At the end of the day, we all know that relationships play an important role and it is critical to be a trusted adviser. That's why we are always striving to challenge the status quo and exceed our customers' expectations day in and day out. Some people consider it to be cliché to say that it's our people who make the difference in our solutions, but we don't. We continue to invest in our talent.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.