The Logistics Matters podcast: Jim Berlin of Logistics+ in Erie, Pa., on providing distributors and first responders with badly needed PPE equipment | Season 1 Episode 6 | DC Velocity
The Logistics Matters podcast: Jim Berlin of Logistics+ in Erie, Pa., on providing distributors and first responders with badly needed PPE equipment | Season 1 Episode 6
How 3PL Logistics+ has operated during the Covid-19 pandemic; how drones are helping in the fight against Covid-19; how retailers are turning their outlets into "Dark Stores."
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Transcript
Jim Berlin of Logistics+
David Maloney, Editorial Director, DC Velocity 0:01 Supply chain companies help their communities cope with the Covid-19 pandemic. Drones are being put to work in the fight against the virus. And distributors get creative in filling the huge demand for online orders. Pull up a chair and join us as the editors of DC Velocity discuss these stories, as well as news and supply chain trends on this week's Logistics Matters podcast. Hi, I'm David Maloney. I'm the editorial director at DC Velocity. Welcome. Logistics Matters is sponsored by Fortna. Fortna partners with the world's leading brands to transform their distribution operations to keep pace with digital disruption and growth objectives. Known worldwide as the distribution experts, Fortna designs and delivers intelligent solutions powered by their proprietary software to optimize fast, accurate, and cost-effective order fulfillment. For more information, visit Fortna.com. As usual, our senior editors Ben Ames and Victoria Kickham will join us to provide their insight into the top stories of this week. But before we get to that, I will turn the floor over to Ben to introduce this week's guest. Ben.
Ben Ames, Senior News Editor, DC Velocity 1:11 Thank you, Dave. Good morning. We have a guest with us, joining us here today, who's Jim Berlin. He's the founder and CEO of Logistics Plus, which is a third-party logistics operator in Erie, Pennsylvania. Jim, thank you for being here.
Jim Berlin, CEO, Logistics+ 1:25 My pleasure, Ben. Thank you.
Ben Ames, Senior News Editor, DC Velocity 1:27 Jim has had a long career in the industry. He's had a 20-year career in the less-than-truckload sector before founding Logistics Plus in 1996 and helping to grow it from just a three-employee operation to having more than $300 million in global sales last year. Jim, we can see you've had some long perspectives on business in the logistics sector, but we're now living through some times that are not quite like any others. I know you just mentioned that you even have some of your back-office computer operators stuffing PPE [personal protective equipment] in the warehouse, there. So there are obviously changes in every part of the business. Could you tell us a little bit more about some of the particular challenges that you've been seeing coming from the coronavirus challenge?
Jim Berlin, CEO, Logistics+ 2:11 Sure, yeah. And you're right, I've been doing this for most of my life, from my days as a truck driver and running an LTL operation to starting this [Logistics Plus] 20 years, 25 years ago. Nothing like this. Not even close. And what we've done--and like, I'm not, I'm not that smart, but I do have a hard head, and we always try to figure things out. So when this thing began, you know, the question is, do you hide or do you kind of figure it out as you go, and we kind of rally the troops to "Let's do something here." And so a lot of our customers were not doing anything, so you can't work for them, but the ones who are still having business would come to us, and we were creative and resourceful in finding solutions for them. And then we found that other customers of our customers, but maybe someone else's customers, were finding they couldn't get the help they needed. So we've had a lot of new people who heard through the grapevine, mostly, that "these guys are moving stuff." So we've actually increased our business with a whole new customer base. Part of which, as you mentioned, is the PPE. We saw that local facilities were having a hard time finding it and getting it. And so we went out there and used our connections around the world, and we're not only able to deliver, but we're able to procure, like almost 10 million pieces already, of masks and hand sanitizers and gloves and things like that. So, it kind of evolved into "Okay, let's figure this out." And I've always said we're a solutions company. And so the solution that western Pennsylvania needed was, "Find us some PPE for frontline providers," and we actually did that in more ways than one.
Ben Ames, Senior News Editor, DC Velocity 3:57 That's really fascinating. We've also seen a number of stories where certain sectors in the industry are seeing sort of winter-shopping peak volumes in what they're trying to handle right now, while others are virtually shuttered. So there's definitely been an effort to move some assets around in order to try to cover that surge in different places, as well.
Jim Berlin, CEO, Logistics+ 4:24 Yeah. What it's done, frankly, is--you know, there's an old quote by John Wooden, the old UCLA basketball coach, and he says "Adversity does not build character, it reveals character." And so, you know, I went from the gang and said, "Look, whatever it takes, let's do this." And so, as you mentioned today, we had a big shipment of PPE stuff come in. It needs to be sorted and palletized and wrapped. So I get the guys and gals from the computers and say, "You're not that busy, because a lot of our normal business is down, so let's run across the street to the warehouse and stuff boxes." And I like that for a number of things. One is, you know, all work is honorable work. So you might be a college graduate working on a computer, but nothing wrong with packing boxes. And it just shows the kind of fortitude and creativity of our group, that no one minds, that they actually like getting their hands dirty once in a while. It's a change of pace for them, too. So it's worked out really well and it's led to a whole new kind of operation for us.
Ben Ames, Senior News Editor, DC Velocity 5:25 That really is inspiring, isn't it? It's that there's a new sense of teamwork that we're seeing, and you see, in applications. Yeah.
Jim Berlin, CEO, Logistics+ 5:32 Teamwork and break down the walls, you know. There's no no walls. Nobody does just one thing here. You do whatever you need to do.
Ben Ames, Senior News Editor, DC Velocity 5:37 That's great advice. Looking forward on that, I wonder if you can pull out your crystal ball a little bit. We're starting to see some restarts, some opening up again, as part--certain regions, anyway, of the U.S. start to roll back some of the sheltering restrictions. Do you think that logistics business will go back to usual after this, or will some of these changes that we've been talking about be likely to stick around.
Jim Berlin, CEO, Logistics+ 6:04 Well, I'm not a good crystal ball guy, and I'm kind of very pessimistic on what this has done to the economy. So I don't know. I don't want to be negative about it. You know, it's starting to come back and we can see volumes picking up. I just don't think everyone will come back. You know, one of our customers is GE aircraft engine, for instance. And I just saw Boeing canceled 500 planes yesterday, so who are you going to build aircraft engines for? So, I think it's gonna be very hit or miss, but I think there'll be a major-- I don't know, "major devastation" might be too strong a word--but something close to that, of a lot of sectors of the U.S. economy. So we'll just have to--you know, you have to evolve, and so we'll find other customers that will survive and thrive, where some customers I think, are not going to be the same for many, many years.
Ben Ames, Senior News Editor, DC Velocity 6:56 Right. Boy, these are fascinating times to live in. In addition to some of those sort of changes in patterns of where your work is taking the assets of Logistics Plus, and some of the walls that are being broken down there, are there new standards that you're currently operating under, just in terms of safety, maybe social distancing and frequent-cleaning kind of things?
Jim Berlin, CEO, Logistics+ 7:21 Yes. From the beginning, we're in Union Station in Erie, Pennsylvania, which is an old, 100,000-square-foot train station, so we have a lot of space here. But from the beginning, we took our compromised employees, told them to work from home, and then we just asked people, like, "If you want to work from here, we'll wear masks. We'll do social distancing. We'll clean the place down, and just be smart and safe. And those who don't feel like coming in can work from home." But honestly, I mean, you can work from home, but it's really not the same. I've done that and I know. So I prefer people here, but we didn't put any pressure. If someone wants to be here, that's great, and you're more involved. And if you're here, you can run across the street to help in the warehouse today. If you're at home, you can't. So it gives you more kind of flexibility to be needed. But we've been very careful about that. And about, of the 140 people in the in the headquarters, between 80 and 100 came in every day, and then others have all come back by now. So we're back to full force and staying busy.
Ben Ames, Senior News Editor, DC Velocity 8:22 Gotcha. Well, that's great to hear. Jim, we really appreciate your joining the podcast today. It's been great to have this conversation
Jim Berlin, CEO, Logistics+ 8:28 It was my pleasure. Thank you, Ben.
Ben Ames, Senior News Editor, DC Velocity 8:30 And we wish you all the best in health and in business going forward here, so... . Dave, we have plenty more to talk about this week. It's been busy on all fronts, hasn't it?
David Maloney, Editorial Director, DC Velocity 8:40 It has been. And thank you, Ben and Jim. We appreciate your insight today. We're going to turn next to Victoria. You reported this week on how drones are playing a greater part in the fight against Covid-19. Can you talk about that?
Victoria Kickham, Senior Editor, DC Velocity 8:53 Absolutely. Yes. And this is in line with what Jim was just talking about in terms of changes in the workplace. It was an interesting study out of a London company called GlobalData. And they're seeing increased interest in the use of drones for a wide range of applications. They're calling it disruptive technology, which drones are. And what we think about in logistics is using those, using drones for delivery. And that's certainly happening. But they're also seeing increased interest in using them for other areas, getting people back to work and things like that. Ensuring social distancing, conducting temperature checks of employees, to make sure everyone's healthy. Using them to spray disinfectants, and for surveillance and monitoring for security issues and things like that. So we're seeing increased interest, and in the industry, we're also seeing some actual applications. UPS and CVS I believe began this month doing delivery, drone delivery, of medicine in Florida, prescriptions. And Ben actually had reported on another situation, I think it was back in March or February. A Chinese company, JD Logistics, was also beginning, or starting to think about, using drones for delivery of medicines and medical supplies. So it'll be an interesting thing to watch for sure.
David Maloney, Editorial Director, DC Velocity 10:08 Yeah, certainly will be. And Ben, you wrote this week about how retailers during Covid-19, during this whole disruption, are distinguishing less between their different inventory streams. Can you explain?
Ben Ames, Senior News Editor, DC Velocity 10:20 Yes, sure thing. And actually, one of the sources for this story, was an executive at JD Logistics as well, as Victoria had just mentioned, with a different story. What he was talking about, he's a man named Bing Fu, who's head of strategy at JD Logistics, which is a large Chinese e-commerce marketplace. And he was talking about how the crisis, the health crisis, has really accelerated some of the changes that people have been seeing coming slowly in the market for some time now. In a word, it's omnichannel. More specifically, I think a lot of us, as private consumers, have seen some changes during the health crisis in the big rise in curbside pickup, for example, even when you just get takeout for dinner from your favorite restaurant. But that's true in a number of stores as well. There's Kroger, which is a large grocery store; Best Buy the electronics retailer; Bed Bath & Beyond--housewares retailer; Container Store, another one. So we see a lot of major names in the industry moving quickly toward something that's been called "Dark Stores," which is, you have the whole building full of employees, full of inventory, but no shoppers allowed in. They bring all the orders to the curb there. And it's one of those things that is certainly being accelerated. We'll have to keep on watching to see if it sticks around.
David Maloney, Editorial Director, DC Velocity 11:39 Yeah, I imagine that we'll have that kind of a setup, I think, within retail stores, for quite some time to come yet, at this point. So it'd be interesting to watch. Ben, we also want to remind listeners of some of our great Covid-19-related resources that we have available on DCVelocity.com. Can you talk a little bit more about that?
Ben Ames, Senior News Editor, DC Velocity 11:58 Yeah, thanks, Dave. We sure do. We have a landing page where we have collected all of our Covid coverage for, it's been eight or nine weeks now. We've been writing an enormous number of stories, so that's a major resource on the site. And then we also have a page that lists all of the specific Covid-related resources that people specifically in the logistics field are offering, whether they're industry groups or vendors or government organizations. So that's a good first stop for anybody who's looking to dig in to find some more details here.
David Maloney, Editorial Director, DC Velocity 12:34 Right. And to learn more, you could go to DCVelocity.com/covid19resources. DCVelocity.com/covid19resources. Thanks to Ben and Victoria for sharing highlights of the news this week.
Ben Ames, Senior News Editor, DC Velocity 12:47 Thanks, Dave.
Victoria Kickham, Senior Editor, DC Velocity 12:48 Thank you.
David Maloney, Editorial Director, DC Velocity 12:49 And if you'd like more information on the stories we discussed today on Logistics Matters, be sure to check out DCVelocity.com for more details. And please provide any comments or feedback that you'd like to give us on our new podcast by emailing us at podcast@dcvelocity.com. And a reminder that Logistics Matters is sponsored by Fortna. Fortna partners with the world's top brands to transform distribution operations into competitive advantage. Expertise equals distribution strategy, DC operations, micro fulfillment, automation, and intelligent software. Distribution solutions designed today for tomorrow's challenges. Learn more about the distribution experts at Fortna.com. We'll be back next week with another edition of Logistics Matters, when we will discuss how to create a culture of safety within your operations. Until then, have a great week and please stay safe.
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."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."
Supply chain risk analytics company Everstream Analytics has launched a product that can quantify the impact of leading climate indicators and project how identified risk will impact customer supply chains.
Expanding upon the weather and climate intelligence Everstream already provides, the new “Climate Risk Scores” tool enables clients to apply eight climate indicator risk projection scores to their facilities and supplier locations to forecast future climate risk and support business continuity.
The tool leverages data from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) to project scores to varying locations using those eight category indicators: tropical cyclone, river flood, sea level rise, heat, fire weather, cold, drought and precipitation.
The Climate Risk Scores capability provides indicator risk projections for key natural disaster and weather risks into 2040, 2050 and 2100, offering several forecast scenarios at each juncture. The proactive planning tool can apply these insights to an organization’s systems via APIs, to directly incorporate climate projections and risk severity levels into your action systems for smarter decisions. Climate Risk scores offer insights into how these new operations may be affected, allowing organizations to make informed decisions and mitigate risks proactively.
“As temperatures and extreme weather events around the world continue to rise, businesses can no longer ignore the impact of climate change on their operations and suppliers,” Jon Davis, Chief Meteorologist at Everstream Analytics, said in a release. “We’ve consulted with the world’s largest brands on the top risk indicators impacting their operations, and we’re thrilled to bring this industry-first capability into Explore to automate access for all our clients. With pathways ranging from low to high impact, this capability further enables organizations to grasp the full spectrum of potential outcomes in real-time, make informed decisions and proactively mitigate risks.”