In our continuing series of discussions with top supply-chain company executives, Donnie Burris of Burris Logistics discusses the challenges of Covid-19 and running a family business, as well as the advantages of diversification.
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.
Donnie Burris became the CEO of Burris Logistics in 2010, after serving in a variety of management and operations roles at the company. With 25-plus years of experience at the organization, he is part of the fifth generation to work in the family business. Based in Milford, Delaware, Burris Logistics provides customized supply chain solutions with an emphasis on frozen and refrigerated products. The company has 2,000 team members, 16 distribution centers, and a fleet of 200 trucks and 450 trailers. It brokers 350,000 truckloads per year and has annual sales of $4 billion.
Donnie Burris is also a board member of Delmarva Christian High School and a former member of the finance committee of Delaware’s Bayhealth Medical Center. He holds a bachelor’s degree from Liberty University in Lynchburg, Virginia, and has completed additional study in strategy and finance through Wharton’s Executive Education Center and industrial refrigeration courses through the Refrigerating Engineers and Technicians Association (RETA). He is also a graduate of the WFLO Institute, the educational arm of the Global Cold Chain Alliance.
Q: You are very strong in food distribution, which has been a critical need during the Covid-19 pandemic. How do you view the current state of the industry?
A: The government told the whole world what we have always known, and that is that our team members are essential workers. As a result of Covid-19, the frozen and refrigerated food industry has experienced an incredible increase in demand. Our team members—from our warehouse personnel to our drivers—are fatigued. We have had to focus on our partner demand and the well-being of our team to make sure the supply chain remains intact.
We have experienced increased demand at both the retail grocery and club-store level, while food-service has taken a hit. For Burris Logistics companies, our diverse brands enable us to be successful while experiencing vendor shortages and industry decline. The current state of the supply chain saw our different brands working together, as well as forming temporary partnerships with food-service distributors, to ensure their workforce was supported and our customers remained well-served.
During this pandemic, we worked equally hard to mitigate the risk of Covid-19. We needed additional team members, extra hours, different cleaning tactics, and catered food.
Q: Does your diversification help in weathering a down economy?
A: The diversification of our brands allows us to operate successfully even when specific industries become impacted. We see a countercyclical impact during tough financial times. During the lockdowns, Honor Foods, our food-service redistributor, saw sharp decreases as a result of restaurant closures. Traditional retail and direct-to-consumer fulfillment experienced record volume due to increased consumer demand. Our PRW Plus and Custom brands were able to meet this demand.
Our business has strived to build resiliency no matter the storm. We consistently turn our focus to our customer needs and the well-being of our team members, and it always leads us to an outcome that we are proud of.
Q: What are the advantages to offering customers both warehousing and transportation services?
A: Having a dedicated fleet is a value-added service for our partners, who can depend on Burris Logistics for real-time visibility, on-time deliveries, and consistent customer service. Additionally, our Trinity Logistics brand offers freight brokerage services that allow us to solve transportation needs anywhere in the country. By bundling these services together into one solution, we are able to offer more value and higher-quality service to our customers.
Q: What are the differences in managing a family-run company compared with a publicly held company?
A: Our focus is always on the far horizon. We strive to be the best at what we do ... not the biggest. Our focus is on building great solutions for our customers, taking great care of our team members, and positively impacting the world around us. As a family business, we manage the business professionally with a board of directors, while also being able to move very quickly and efficiently whenever there is a need to do so.
Q: Burris has been recognized for being a great place to work. How do you develop and maintain your culture?
A: It starts in the heart. We are a work-in-progress, but we know what we want Burris Logistics to be. We have taken the time to articulate those values that are important to us. We try to make these a part of our everyday life, and we look for leaders who possess a servant-leadership mentality.
Our business is about people; they make all the difference in the world. If we can create an atmosphere where people know they are cared about, know that their talents are being utilized and their work is making a difference, and know that we are pursuing excellence, then we are well on our way to the type of culture that we want Burris to achieve.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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."