In an exclusive interview with DC Velocity, Kathy Fulton of the American Logistics Aid Network talks about the supply chain community’s role in disaster response and why the Covid-19 relief effort has been different from all the rest.
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.
For the past 15 years, the American Logistics Aid Network has been on the front lines of nearly every major catastrophe the world has endured. Better known as ALAN, this consortium of transportation companies, third-party service providers, and warehouse operators helps coordinate the logistics community’s response in times of crisis.
Covid-19 has presented a slightly different agenda from the earthquakes, tornados, and famines that the members of ALAN typically address. But as Executive Director Kathy Fulton explains, it’s just another moment for the heroes of the supply chain to shine.
Q: Can you describe the work of ALAN?
A: ALAN works with businesses, nonprofits, and government to harness logistics knowledge, expertise, and resources to serve communities that have been affected by crisis. We do that in a variety of ways. We work with nonprofit organizations to help them find pro bono transportation and material handling equipment. We work with businesses that want to help but may not otherwise have an outlet to do so.
We also provide businesses with information about what’s happening in the affected area. And we work with government entities to help them better understand how business is operating and what’s happening with freight flows and the transportation sector. Government entities then have a better idea of what their response should be. That is what we do. We’re saving lives through logistics.
Q: ALAN was created in response to infrastructure failures in a time of critical need. Can you describe what took place?
A: Sure. Hurricane Katrina brought some unique logistical challenges when it slammed into the Gulf Coast in 2005. Although relief supplies came pouring in from across the country, there were problems getting them into the survivors’ hands. People were hungry and couldn’t get what they needed because either businesses or government couldn’t get the necessary logistics in place.
So, at the Council of Supply Chain Management Professionals’ (CSCMP) annual conference that year, a group got together and said, “Look, we do this year-round. We move products literally around the world every single day. It seems like we ought to be able to use our knowledge and expertise to help solve these challenges.”
That was really the birth of ALAN, which started out as a consortium of 13 industry and trade associations. Today, that’s grown to somewhere north of 30 organizations that we work with on an ongoing basis.
Q: What part of the supply chain do they cover?
A: Everything. We work with everyone from manufacturers through operations and supply chain management and on to the transportation and broker community.
And there are some nontraditional associations we partner with, like the moving and storage industry and the bottled water association because they have logistics assets and requirements. We work to provide the logistics behind the basic things that are needed in any disaster, like food, water, shelter, and medicine.
Q: So unlike a traditional relief organization, you’re not raising funds to buy supplies and ship them. You’re more of a matchmaker that connects relief organizations in need of services or equipment with companies that can fill those needs?
A: Yes, that’s right. The model doesn’t always make sense to people who take a more traditional view of humanitarian relief work because we’re not directly putting products on trucks. We are helping to put somebody else’s product on a truck or in a warehouse.
So we are not procuring things like supplies or equipment. We are literally finding people who need resources, finding people who have these resources, and making an introduction and letting that relationship go from there.
Q: ALAN usually mobilizes in response to disasters in a localized area. In the case of Covid-19, it’s a worldwide event. How is your role different now?
A: Sometime in January and February, even before the coronavirus outbreak reached the U.S., we realized our role had changed because this is not geographically concentrated. It’s not like a storm in the Southeast United States or a tornado that only affects a couple of communities. This is everybody all at once.
The geographic scale of what we’re doing right now across the nation is new for us. But the types of requests are very similar to what we see in any other event—nourishment, hydration, medical care, and shelter. Those are the things people need. Those don’t go away. In fact, some of those things are amplified.
For example, we work with a lot of food banks. Some of those organizations saw a two, three, four, or five-hundred percent increase in requests. That requires additional transportation to move supplies to the warehouse. We’re also getting requests for support for last-mile deliveries. Again, the scale is increased, the intensity is increased, but they’re still the same types of requests that we’ve been seeing for 15 years.
Q: It is a daunting task with all the needs that are there.
A: Just the pace is interesting. It hasn’t slowed down, honestly. Businesses have figured out how to keep toilet paper and other staples on retail shelves for the most part. But the unemployment numbers are staggering, and that’s causing more strain for our primary partners in the nonprofit community.
Q: Have you noticed any particular problems or resource shortages?
A: Right now, there is plenty of available capacity in the transportation networks. The problem is, it may be too much capacity. We are starting to see smaller fleets parking their trucks. The concern is that if we lose those trucks, will we have enough capacity to respond if there’s another major shock?
Another potential trouble spot is the availability of volunteers within the humanitarian space. A lot of the people who volunteer are at higher risk of contracting Covid-19. Nonprofits are having to look for new and unique ways to run their operations because they don’t have that consistent level of volunteers that they’re accustomed to.
Q: We are recognizing heroes of the supply chain in this issue. Could you give us some examples of companies that have gone above and beyond in this time of crisis?
A: Everyone, once they understood the problem, started to look at how they might be able to leverage their available resources. Whatever the core business, they began asking themselves what they could do to support the relief effort. So that means the chemical community and even distilleries have started manufacturing hand sanitizer, which I think is a really creative solution.
We’re also seeing companies whose transportation business has slowed and are looking for ways to keep their employees busy and who want to contribute. So they’re saying, “Look, we may not have commercial product to move right now, but we will help haul personal protective equipment or food or whatever it may be.”
The cool thing about it is the logistics community is right there at the forefront. Many are being hit hard for a variety of reasons, but they are stepping up and serving.
Q: With so many people out of work, food banks serve a critical need right now. Are you seeing demand for material handling equipment like conveyors, forklifts, and racking to help food banks handle the surge in volume?
A: Yes. We’ve gotten requests for conveyors and supplies as well as boxes and stuff like that to package food in. A lot of those requests are for equipment that’s easy to install, such as gravity-feed conveyor, as well as anything to increase throughput, especially when you have a limited workforce and more volunteers.
Q: I’m sure there are people with supply chains skills and assets out there who want to help. How can they find out what’s needed?
A: They can always visit our website, www.alanaid.org. We’ve posted a list of needs there, and we keep it up to date. Or they can just call us.
The other thing is, if they don’t see a request that fits with what they want to offer, let us know anyway. There is a way to contact us on the website with those kinds of offers. We work to match them with someone with a corresponding need.
Q: If someone doesn’t have services or equipment to offer, can they make a cash donation?
A: Yes, absolutely. We operate on a small budget, and that budget has been strained like everyone else’s because of the Covid-19 response. People who want to support us financially can donate through our website. Those funds help us cover our expenses for technology and all of the other things that allow us to coordinate more effectively.
Q: Although the country is reopening, it will still take some time to get back to normal, especially with all the job losses. What do you expect to be the biggest needs for the next few months?
A: Right now, we’re seeing a lot of requests for transportation service—someone to haul the food from the field to the food bank and out to the people who need it. That is definitely going to continue as we go through the summer. We have enough food and we can process enough food, but there are some kinks in the processing supply chain.
Another challenge is that states have different policies for reopening, and those policies can vary from county to county. It can be difficult for someone operating a supply chain to navigate all of the different policy restrictions. So we’ve created a map that shows all of those policy restrictions by county. You can go to www.alanaid.org/map and request access. We have an incredible team of volunteers who are updating it on an ongoing basis. Every time a policy changes, they are making that update, and you can see it there live and in living color.
Q: Are there any lessons we’ve learned from the first wave that could be applied to future waves should there be any?
A: Yes. One of the really cool things about my job is that I have a front row seat to the crisis response. We convene with all of the associations we partner with once a week and talk about problems that affect all of the members.
The policies and the internal ways in which companies are protecting their employees had to be developed in real time and some are here to stay. I would consider all of that part of the lessons learned and lessons applied. I think we also learned from countries that dealt with this before us and have helped shape the response in the U.S.
The biggest thing is that it’s not just during times of crisis that supply chain folks are heroes. However, it often takes a disaster to make people aware of the critical role of the forklift operator or the truck driver in making sure they have the food and the water and the medical care they need every day. It is really cool to see that they’re being recognized now. They have always been heroes, but now the rest of the world knows it.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
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.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.