Logistics Industry culture shift targets workforce shortage
A new world of work is emerging for the Logistics Industry. Gathering insights from over 80 members of the logistics industry, from operational roles to senior management, the Q3 CCLI report detailed a cultural shift in hiring and retention.
One of the most critical issues facing the logistics industry right now is workforce shortages. While automation and robotics are allowing teams to achieve higher output, simplify complex tasks, and remove manual paperwork — the need for skilled personnel will never be replaced.
The industry is continuing to grow in both size and value, and flow on-impacts from the global pandemic continue to impact day-to-day operations — including remaining workforce shortages.
The unprecedented nature of the pandemic highlighted the critical role of supply chain stability and flexibility in the logistics industry. However, it also brought with it border closures coupled with workforce restrictions, illness, and health precautionary measures that dwindled the workforce at a time when logistics operations were booming.
The wider impact of post-pandemic flow-on include rising labor and operational costs (rising fuel prices and warehouse rent among a few), changes in workforce preferences and accelerated retirement. These trends have coupled to change the workforce of our industry, driving companies to explore new avenues in terms of workforce attraction and retention.
The CartonCloud Logistics Index (CCLI) 2022 Q3 industry whitepaper found ongoing workforce shortages were driving businesses to think outside the box in terms of hiring.
Gathering insights from over 80 members of the logistics industry, from operational roles to senior management, the Q3 CCLI report detailed a strong cultural shift angled at boosting workforce recruitment and retention.
“What it means to work in logistics is changing. Our industry is changing, and while our bread and butter will continue to be the storage and movement of goods, the services and specialized roles supporting this are evolving,” said Mr Fletcher.
“We’re seeing a major shift in the attitudes and tactics surrounding hiring within our industry.
“Companies are working to become more attractive employers by offering flexible work arrangements, on-the-job training, higher pay structures, and career advancement, looking at their own company values and culture.”
Having more defined company values can not only be used to set employers apart from the pack, CartonCloud COO/ Head of North America Shaun Hagen explained.
Strong company values also provide an opportunity for employers to look at bringing in new skill sets, and offering their customers new services, like data analysis, sales and marketing.
“It may be that new logistics employment opportunities emerge as a result of the cultural shifts toward hiring,” Mr Hagen said.
“New members of the workforce will continue to diversify the skill sets held within companies, and the adoption of technology and software solutions will continue to reduce the load of manual tasks, allowing companies to invest in other areas for growth.”
The CCLI report showed adoption of technology is trending upward, driven by greater expectations from both customers and other industry partners for data capture and sharing.
“This is altering the landscape of hiring within the logistics workforce,” Mr Fletcher said.
“Higher tech adoption across the industry brings new roles for data analysis and may open up greater opportunities for hiring flexibility in terms of roles and hours. What’s more, companies using easy-to-operate technology are finding it easier to train and assign workloads within their workforce, which means they can expand their hiring beyond those with prior industry experience.”
CCLI respondents cited flexible hours, on-the-job training, healthy team dynamics, wage incentives, and appropriate benefits as some of the tactics they were using to attract and retain their staff.
The report gathered insights from over 80 members of the logistics industry, across all roles and operations, from Australia and North America.
“The CartonCloud Logistics Index allows us to track and understand the issues that are most important to industry members today, and also gives us the opportunity to provide valuable insights and data back to the industry,” Mr Hagen said.
“We believe in data-led decision-making to drive growth. It’s at the heart of what we do, creating technology that is both powerful and easy to use — based on the most important features logistics people need to grow their business.
“Providing data like this allows us to support industry members to explore their own decisions within an industry context, and grow from the insights shared by others.”
CartonCloud works closely with industry members to identify, track and predict the issues and opportunities facing logistics businesses today and in the future.
To find out more, download the full CartonCloud Logistics Index from our webiste, or contact the team at CartonCloud for more information on intuitive software systems, built for logistics people.
Occupiers signed leases for 49 such mega distribution centers last year, up from 43 in 2023. However, the 2023 total had marked the first decline in the number of mega distribution center leases, which grew sharply during the pandemic and peaked at 61 in 2022.
Despite the 2024 increase in mega distribution center leases, the average size of the largest 100 industrial leases fell slightly to 968,000 sq. ft. from 987,000 sq. ft. in 2023.
Another wrinkle in the numbers was the fact that 40 of the largest 100 leases were renewals, up from 30 in 2023. According to CBRE, the increase in renewals reflected economic uncertainty, prompting many major occupiers to take a wait-and-see approach to their leasing strategies.
“The rise in lease renewals underscores a strategic shift in the market,” John Morris, president of Americas Industrial & Logistics at CBRE, said in a release. “Companies are more frequently prioritizing stability and efficiency by extending their current leases in established logistics hubs.”
Broken out into sectors, traditional retailers and wholesalers increased their share of the top 100 leases to 38% from 30%. Conversely, the food & beverage, automotive, and building materials sectors accounted for fewer of this year's top 100 leases than they did in 2023. Notably, building materials suppliers and electric vehicle manufacturers were also significantly less active than in 2023, allowing retailers and wholesalers to claim a larger share.
Activity from third-party logistics operators (3PLs) also dipped slightly, accounting for one fewer lease among the top 100 (28 in total) than it did in 2023. Nevertheless, the 2024 total was well above the 15 leases in 2020 and 18 in 2022, underscoring the increasing reliance of big industrial users on 3PLs to manage their logistics, CBRE said.
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”