Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Companies throughout the logistics sector are focused on finding enough labor to drive trucks and stock warehouses, but too much of that current discussion is focused on thirty-something millennials instead of on the rising generations that will soon replace them, known as Generation Z and Generation Alpha, according to a panel discussion hosted by the industry group MHI.
Although the eldest members of Generation Alpha are barely 10 years old today, they will enter the workforce in just a decade, bringing with them a completely different lens for viewing technology and its place in the workforce than any previous group, speakers said October 6 in the online session “Roadmap 3.0 Panel: Transformation Age: Shaping Your Future.”
For example, by 2030, robotics and augmented reality will be in mainstream use for warehousing, manufacturing, and distribution centers, the panelists said. The session was a part of Charlotte, North Carolina-based MHI’s annual Fall Meeting, held as a virtual event this year due to the coronavirus pandemic.
Those new technologies will be natural tools—not challenging novelties—for the children now growing up around them, according to MHI. Strict definitions vary, but many researchers say millennials (also known as Generation Y) are those who were born between 1980 and 1995, followed by Generation Z with birthdays between 1996 and 2015, and Generation Alpha born between 2010 and 2025.
That workforce of the future will be more diverse, more dispersed, and more highly skilled than their predecessors, said panelist Brett Wood, CEO of Toyota Material Handling.
They have enormous potential to help companies move toward a more technology-enabled future, but many material handling firms will need to adjust their hiring strategies to recruit and retain them, Wood said. For example, the younger generation expects sustainability to be a core value of the company they join, not just a special project. Likewise, they want to work for companies that are good corporate citizens, not merely by writing checks, but by offering their employees paid time off to volunteer at local charities, for example.
For companies that can make those changes, the rewards of landing next-gen employees can be enormous, because the very foundations of technology are already changing around us, said panelist Melonee Wise, CEO of autonomous mobile robot (AMR) vendor Fetch Robotics.
In order to forecast the technology that will be in common use 10 years from now, she pointed at the heritage of today’s robotics and machine learning platforms, many of which were first developed about 20 years ago. Applying that same yardstick to the future, she said that within 5 to 10 years, we’ll see a better leveraging of hosted cloud platforms. “So don’t be afraid of the cloud. That’s where you’ll get the best leverage for your data and capabilities,” Wise said. “One of the biggest limits in robotics is computation power for executing algorithms. The only way to do it is to scale up, and you can do that in the cloud.”
Another implication of the rise of cloud computing will be new applications in edge computing, also known as “the fog” because it is neither nailed to the floor nor hovering virtually in the cloud, but living somewhere in between, like robots, Wise said.
As well as hiring a new generation of workers who are comfortable with that approach, logistics sector companies must also demand more of their leaders, said panelist Nara Eechambadi, CEO of Quaero, a customer data platform provider. “Companies need a more data-centric mindset, not just about raw data but about analytics and insights,” he said. “We need to democracize data, make it available so people can use it to make better decisions and do their jobs better.”
According to Eechambadi, American business executives too often defer to their company’s chief technology officer (CTO). Instead, they should emulate savvy European business leaders, who learn the basics of new technologies themselves. While executives don’t have to be experts, they do need to know how to ask the right questions, he said.
Fortunately, executives can start boosting their technology games right now, because the essential infrastructure is already available, in the form of cloud-based computing and open-source software development. So leaders need to focus on interoperability and adaptability with those trends, and avoid getting bogged down in trying to duplicate the same foundation within their own companies, Eechambadi said.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."