In our continuing series of discussions with top supply-chain company executives, Mike Glodziak discusses the growth of omnichannel and the advantages of utilizing a 3PL.
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.
Mike Glodziak is president and CEO of Legacy Supply Chain Services, a third-party logistics service provider (3PL) with more than 35 distribution, fulfillment, and transportation operating locations in the United States and Canada. Glodziak, who has over 30 years of leadership experience in North American supply chain management and design, joined Legacy in 2013 after serving as president of Vitran Supply Chain Operations. Prior to that, he served as a principal with Tompkins Associates, where he managed large supply chain re-engineering projects in Mexico, the United States, and Canada. Glodziak has a degree in industrial engineering technology from Mohawk College in Hamilton, Ontario.
Q: How would you describe the current state of the supply chain industry?
A: As a result of evolved consumer behavior, we are seeing an imbalance of supply chain capacity relative to demand. And that applies not only to the usual types of capacity we think of, such as warehouse real estate and transportation capacity on trucks or ocean vessels, but also to capacity of the labor force and capacity of our information systems. We are in the midst of a real shift in how brands leverage their supply chains to deliver products to their end consumer.
Q: What are the advantages of using a 3PL rather than in-house services?
A: 3PLs have seen it all. Our experience in diverse supply chain environments allows us to better solve the challenge of aligning people, processes, and systems to drive service-level improvements and reduction in cost. Today, you are seeing growth-focused 3PLs investing in more omnichannel supply chain capacity, which can be a strategic advantage for businesses facing challenges with growth and scalability.
Q: Legacy is a full-service supply chain service provider, with assets in distribution, transportation, and supply chain management. What are the advantages to working with a company that offers so many integrated services?
A: Having a horizontal and vertical presence in our customers’ business gives us more opportunity to add real value. A successful 3PL relationship always starts with a partnership that is equal parts strategic and tactical. Having responsibility upstream and downstream in multiple nodes of the supply chain enables a service provider to have more control over execution and will uncover more opportunities to solve larger-scale challenges that might not otherwise be visible.
Q: How has the growth of omnichannel changed distribution?
A: The growth of omnichannel supply chain has placed an additional premium on a business’s ability to optimize how its inventory serves all sales channels. Traditional supply chain goals, such as reducing a product’s landed cost, are no longer a solid indicator of success. Businesses must design distribution and fulfillment networks that place goods closer to retail and online consumers to meet demands for faster service. Further, networks must be flexible and provide redundancy to overcome demand volatility and disruptions to global supply.
Q: How are you able to attract and retain workers in today’s tight labor market?
A: We have always been able to retain our people at higher levels than others in this industry based on our focused approach to culture and leadership development. People want career opportunities; however, you also must give them the tools and support to succeed. While high retention does help attract new talent, we’ve had to innovate to overcome current challenges in the labor market. Investing in your ability to recruit both active and passive job seekers and communicating your company’s employee value proposition across all interactions is critical to growing your talent base.
Q: What is the most significant change you have seen during your time in the industry?
A: Aside from [supply chains] now being a topic on the 5 o’clock news … The technology innovations in this industry are allowing businesses and service providers to be more deeply connected. Omnichannel technology innovations include OMS technology telling us the cost and service benefit of shipping a widget from a DC versus a store shelf, or RFID and WMS technologies allowing us to pinpoint a product’s location by serial number in a warehouse, or integrated freight track-and-trace applications communicating with end consumers in real time via text. Looking forward, eventually we will realize the possibilities of blockchain to create true goods accountability across all trading partners and nodes of the supply chain.
IMC says it specializes in comprehensive end-to-end transportation solutions to or from seaports or rail hubs, customer facilities and inland in the United States. The firm’s network of 49 locations handles 2 million twenty-foot equivalent units (TEUs) annually in intermodal drayage and rail operations. IMC employs around 1,700 people and earned revenue of around $800 million in 2023.
According to Kuehne+Nagel, the move ensures flexible transportation solutions in times of increasing supply chain disruptions throughput its network of almost 1,300 sites in close to 100 countries and some 80,000 employees.
"The Kuehne+Nagel strategy is based on organic growth supported by targeted bolt-on acquisitions. Asia and North America are the key growth markets for our business, where we have established a leading position which we systematically expand,” Joerg Wolle, chairman of the board of directors of Kuehne+Nagel International AG, said in a release. “With IMC in the USA as with the acquisition of Apex in Asia, we do rely on long term partnerships. This reduces the acquisition risk, ensures quick success by deepening an already rewarding cooperation. Acquiring a majority stake in IMC represents another important strategic step.”
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.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”