In the face of spiraling unemployment claims triggered by coronavirus shutdowns, grocery chain The Kroger Family of Companies has hired more than 100,000 workers in the past eight weeks, including those from sectors hardest hit by the economic shock of the pandemic, like restaurants, hotels, and food service distributors.
Supply chain snarls and work-from-home policies have caused spikes for essential goods like food and medical gear, while nearly idling other sectors of the economy. As a supermarket retailer, Kroger has seen a jump in demand for its products, helping drive the hiring increase.
Kroger's workforce topped 460,000 associates prior to the crisis, so its recent hiring efforts have helped provide continuous access to food and essential products during the pandemic. To handle the increase workforce, Kroger initiated an expedited hiring process in early March to shorten the time between application and employment, onboarding new hires in an average of 72 hours. Kroger also adjusted its new hire approach to focus on tasks as opposed to role-based development, allowing new hires to more quickly acclimate to their roles and expectations, the company said.
"Throughout the pandemic, Kroger's top priority has been to provide and maintain a safe environment for our associates and customers with open stores, comprehensive e-commerce solutions, and an efficiently operating supply chain," Rodney McMullen, Kroger's chairman and CEO, said in a release. "Since March, we have invested to reward our associates and safeguard our associates, customers and communities."
And in other examples of the logistics industry dedicating its assets to the coronavirus fight:
Liquid and powder coatings supplier Axalta has shifted the manufacturing capabilities of its facility in Tlalnepantla, Mexico, to produce more than 1,000 liters of hand sanitizer, which is being donated to local healthcare facilities, first responders, and other essential businesses. These efforts complement Axalta's global support of coronavirus relief efforts which include sending personal protective equipment (PPE) to hospitals in the U.S., France, Belgium, and Germany, and providing more than 5,000 seat covers to medical professionals who can use the seat covers in their own cars to reduce the risk of transmitting the coronavirus when they are visiting those diagnosed with the virus. "Several Axalta plants in Latin America, Europe, and the United States have shifted production from paint to hand sanitizer to help meet the growing need of this product in countries around the globe," Daniel Salcido, Axalta's president of Latin America North, said in a release. "Axalta has already donated thousands of liters of hand sanitizer to support the local communities where our employees live, work and raise their families. We will continue to do our part for our customers, employees and all those on the front lines of this pandemic that are helping to keep us safe."
Aerospace and defense contractor Lockheed Martin Corp. has donated cargo capacity on its corporate aircraft as an in-kind donation to support the federal government's Covid-19 response for medical transplants, helping ensure that that life-saving products from European donors would reach American patients on time. The flights help ensure the timely delivery of bone marrow and blood stem cells for transplant, a need that arose when the National Marrow Donor Program (NMDP)/Be The Match ran out of available European Union couriers to deliver life-saving cells to U.S. patients, since tens of thousands of commercial flights had been canceled during the pandemic. Lockheed Martin will be providing weekly air transport based on government medical need – flying government medical teams to the most critical, high-priority locations around the country and/or flying to support bone marrow transport to help with the government's coronavirus response.
E-commerce micro-warehousing platform provider Ohi is helping to keep restaurants in business despite social distancing policies during the pandemic. Ohi has helped the San Fransisco-based wine bar Noeteca pivot from food service into another industry, transforming their brick-and-mortar restaurant into a micro warehouse that supports delivery throughout California for e-commerce brands such as HAUS, Juneshine, and Taika Coffee. Coronavirus has significantly accelerated consumers’ desire for instantaneous commerce across all categories, and Ohi is also working with a variety of brands across the beverage, beauty, health/ wellness, and apparel/footwear spaces, enabling them to reach customers with same-day service during today's new, remote landscape, the firm said.
Less than truckload (LTL) freight management software provider Carrier Logistics Inc. (CLI) has introduced a free, artificial intelligence (AI)-based tool for determining the exact location type for a pick-up or delivery during the Covid-19 crisis. The “LOCI” tool helps clients to plan and dispatch the right driver with the right equipment by interfacing with the firm’s transportation management software (TMS). For example, the tool offers over 115 categories of locations—covering everything from “airport” to “zoo”—to provide much more detail than the classic binary choice between residential and commercial. “Right now, many carriers are servicing different customers and locations than they have in the past,” CLI President Ben Wiesen said in a release. “And we know that staff at the carriers is in a state of flux, with people covering dispatch who might not have the tribal knowledge about the customer base. And of course, we know how confusing that can be. In order to assist our clients during these turbulent times, (and even as the economy starts to open up) we are offering this emerging technology for free through June 30, 2020.”
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.