The Logistics Matters podcast: Effects of Covid-19: Workforce challenges, deaths in the industry, emerging companies, cargo volumes, resources | Season 1 Episode 1
The challenges of helping employees feel safe coming to work during the coronavirus crisis; Covid-19 deaths in the logistics industry; new companies emerging to serve the at-home workforce; how the virus is affecting cargo volumes; and Covid-19 resources for supply chain professionals.
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Transcript
David Maloney: 0:03 Covid-19 continues to disrupt global supply chains. Logistic workers find that they're on the front lines fighting a new kind of war. And companies emerge to provide new capabilities for a stay-at-home work forces. 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 Dave Maloney. I'm the editorial director of DC Velocity. Welcome. Joining me to provide their insight into the top stories of this week are senior news editor Ben Ames, and senior editor Victoria Kickham. Victoria, just to start with, of course, the story that's dominated the headlines for the past several weeks not only in supply chain, but everywhere, is Covid-19. And you've reported in this past week about how logistics workers are finding themselves on the front lines of this new kind of war.
Victoria Kickham: 0:55 Yes, in my talks with logistics companies from across the spectrum, we're finding that they're facing the challenges of making their employees feel comfortable coming to work, by safety protocols and communicating the most up-to-date information on the virus--while at the same time, keeping their businesses running. This is most acute, it seems, for 3PLs, transportation companies serving customers in essential industries like food service, health care, medical, those kinds of industries.
David Maloney: 1:25 What sort of ways are they helping them to feel comfortable when they're being faced with what everybody is dealing with these days?
Victoria Kickham: 1:34 One company I talked to said they're spending 16 hours a day on this. I talked to a senior human resources representative, and she was saying, just communicating over and over again, reminding employees, why they're coming to work every day. The importance of getting is essential services--products and services--to hospitals, medical facilities, grocery stores And at the same time, reminding them what they need to do. They've put into place all kinds of deep-cleaning regimens, social distancing. In some cases, they've had to retool their work stations so workers are no longer two or three feet apart. They're six feet apart. Just really revisiting all of those things and reminding employees what they need to do and why they're doing it.
David Maloney: 2:21 Yeah. And then we've also seen sort of the first casualties that are--on the workers on the front lines. You reported on that as well [Ben].
Ben Ames: 2:30 I did. Yeah. Just today there was a story in the Wall Street Journal that the U. S. Postal Service has lost a dozen of its workers as casualties, as deaths from Covid-19, so far. And that follows news the previous week of a couple of workers in logistics jobs who had passed away from Covid-19 . One of them was at a military depot in Pennsylvania. And then there was also four additional workers who had been at grocery stores, which is a place where even those of us are sheltering at home have seen that they're workers in really visible jobs, right there among the crowds every day.
David Maloney: 3:14 And certainly I think people are even more aware of supply chain than ever before as they realize the importance supply chain plays on an everyday basis, let alone in the midst of a crisis. Ben, you also talked about some new companies that are beginning to emerge with ways to be able to serve an at-home work force. Can you tell us about that?
Ben Ames: 3:34 Yes, that's right. The Covid has really sort of upended some of the typical patterns in warehousing and delivery and transportation. We've seen the federal FMCSA regulators suspend their hours-of-service limits for truck drivers carrying certain loads, so that there's some real spikes out there in the amount of deliveries and the time the truckers are spending on the roads. And one of the impacts of that, you know, venture capital keeps on going. And there was a $30 million round, it was raised for a startup company called Bringg, which is spelled like it sounds, but with two G's on the end. What Bringg does, they have a software platform that lets users orchestrate and oversee the whole delivery chain, whether it's their own in-house fleets, whether using third party delivery providers, a combination, whatever it is. So it really helps the visibility over that complicated process.
David Maloney: 4:41 Very good. Victoria, the Logistics Manager's Index is also reflecting our new normal. Can you tell us about what that Index is all about and what it's saying right now?
Victoria Kickham: 4:52 Sure. The Logistics Manager's Index is a monthly report that comes out, it surveys professionals across the logistics and supply chain, and it had been trending down for the last couple of years. Still growing--I should say, still indicating growth in the sector, but trending down and sort of showing that the industry had settled into kind of a slow growth mode. But in March, activity really, really picked up and increased, just as you'd expect, because of the growing need for transportation and warehousing. So, really we'll know, what happens in April will tell us a lot. And at the same time, we noticed that earlier this month you know, shipments--or cargo, I should say--through some of the nation's ports were down drastically, so that paints a different picture. So the LMI folks and others a really kind of waiting to see how this plays out in April, to see what happens.
David Maloney: 5:49 Then we'll report on that at that time. Ben, we've also got on our website to some great Covid-related resources. Can you tell us about what's available there?
Ben Ames: 5:59 We have, yeah. There's companies that have been, you know, so affected by this--as Victoria was saying, throughout the logistics sector--that some of them have compiled really incredibly helpful amounts of information to help their partner companies and their clients navigate this strange new world. So, as we've come across those in our reporting and in our speaking with industry figures, we've collected them all on a single resource page, so anybody can come and see how Covid is affecting the logistics sector specifically. I can give an example of one of those.
David Maloney: 6:35 Please.
Ben Ames: 6:37 So that there's a group called MHEDA, which listeners may be familiar with. They're the Material Handling Equipment Distributors Association. And MHEDA has a landing page full of Covid-19 resources and advice for anybody in the industry, and five points on that page that people can help determine who is an essential business, in terms of that classification, to keep on operating. It summarizes the various stay-at-home orders in different states. It gives guidance on how to manage the workplace during the crisis, which again, that would touch on some of Victoria's reporting. It gives members news updates on status of operations. For instance, we've seen some ports, maritime ports, revert to weekend hours, and we've seen some grocery stores have restricted hours so they could have cleaning. And then lastly, it gives a calendar of webinars. Because all of this, as soon as we've learned what's new in Covid, it seems to change the next day. So it's more important than ever to stay informed
David Maloney: 7:47 And so on that resources page at DCVelocity.com, we have links to where other people have placed resources, and those are available. We also have a very special section, too. In fact, a header as you come on to the website, where you can go directly and see the latest in the coronavirus coverage. So that's it for this week. For more information on the stories that we discussed in Logistics Matters, be sure to check out DCVelocity.com for details. Thanks, Ben and Victoria, and thank you all for listening. We'll see you next week on Logistics Matters.
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."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.
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.