As former director of operations at the U.S. Cyber Command, Brett Williams knows what it takes to protect our vulnerable supply chains. We asked him what companies can do to safeguard their data.
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.
When Brett Williams was flying F-15 fighter jets for the U.S. Air Force, he never dreamed he would become one of the nation’s leading cybersecurity experts. But when you answer the nation’s call, you accept whatever mission you’re given. For him, it was becoming director of operations at the U.S. Cyber Command, a unified combatant command launched in 2010 to strengthen the Department of Defense’s (DOD) cyber capabilities and expertise. Maj. Gen. Williams ended up leading a team of 400 people responsible for the global operations and protection of all DOD computer networks as well as the planning and execution of authorized offensive operations.
During his time as an Air Force general officer, Williams served in significant senior executive leadership positions, including director of operations for the U.S. Air Force. He was also 18th Wing Commander in Okinawa, Japan, where he led the largest combat wing in the Air Force and oversaw a community of over 25,000 U.S. service members, their families, and Japanese employees. His 33-year Air Force career also included more than 100 combat missions as a F-15C fighter pilot.
Upon his retirement from the military in 2014, Williams moved into the business world, where he co-founded IronNet Cybersecurity. He is a recognized cybersecurity expert and sought-after speaker as well as a guest professor at his alma mater, Duke University, where he earned his B.S. in computer science. He also holds three graduate degrees in management and national security studies.
Williams was recently a guest on DC Velocity’s “Logistics Matters” podcast, where he spoke with Group Editorial Director David Maloney.
Q: How did you make the journey from military commander to cybersecurity expert?
A: I was in the Air Force for 33 years, 28 years as an F-15 pilot. Then I passed a highly selective screening process to move over to the IT and cyber world. I finished up at the U.S. Cyber Command and had broad responsibility for making sure Department of Defense networks were defended as well as planning offensive operations.
When I moved into this space about 12 years ago, I didn’t have any background in this field other than a 1981 computer science degree from Duke. But I put in the effort to develop a bit of technical expertise.
That’s something that I think is extremely important for business leaders to do. They can’t afford to delegate the risk decisions in the world of cybersecurity solely to the technical experts, whether they’re in-house experts or outside contractors. Leaders need to gain some relevant knowledge in this field so they can decide what is appropriate for their companies and what steps need to be taken. They need to be able to have an intelligent conversation with the providers of their cybersecurity services in the same way they do with everybody else on their leadership teams.
I encourage them all to spend a little time to get familiar with these issues so they can ask the right questions and make sure the answers they’re getting make sense to protect their businesses.
Q: We continue to hear about breaches of security systems, such as hacking and ransomware attacks. What are the biggest threats to our information systems right now, and where are they coming from?
A: There are two broad groups of threats out there. There are what we refer to as the “nation state threats,” and for the United States that continues to be China, Russia, North Korea, and Iran. And then there are the criminal groups.
I think the most important thing for people to keep in mind is that the worry is no longer about a teenager in his basement in a hoodie who is hacking for fun. Both the nation state threats and the criminal groups are well resourced and trained. They have vast expertise and tools, and they are deploying them broadly. I would argue that there is no company of any size in any sector that doesn’t have to consider the possibility that it could fall victim to a very advanced type of cyberattack.
Q: Along those lines, I think many companies feel that they’re too small to be threatened, that no one would bother to come after them. But the threat is real for everybody, correct?
A: That is 100 percent right and especially in the logistics and supply chain business. Every company that is part of that supply chain is a potential target.
Maybe you just supply some software that helps people manage inventory or maybe you’re a very large trucking or rail company that coordinates deliveries all over the country or the world—no matter how big or small your company is, you have a critical role in the supply chain that supports both our national economy and our national security. The people who are threats know that smaller companies are the least well defended, even though they are frequently a critical cog in this supply chain.
So, the first thing I would ask folks to consider is that you have a role in our national security. I would argue that your ability to make supply chains work and not bring risk is a national security issue, and I ask you to take it seriously.
Q: In what ways are our supply chains under threat?
A: The first thing to understand is that Covid brought the term “supply chain” into the vernacular and made people aware that disruptions to the supply chain are serious issues—including those who would seek to cause us harm, particularly those nation state threats I talked about. They know that if they can interrupt these national supply chains that impact our economy, our security, and our ability to “do” logistics, they can cause significant internal friction and really set us back on our heels.
Looking at the supply chain from a more tactical perspective, what you have to think about is that none of these companies operates alone. You have a supply chain that you rely on to make your business run, and, more than likely, you are part of a supply chain that makes another business run. So, as you look at your supply chain, you have to take it very seriously, particularly when you are sharing data or giving someone—such as a 3PL partner—access to your systems. What kind of security are those partners maintaining? How do you know if they are protecting your interests?
At the same time, you have a responsibility to do the same when you are providing services to another company. How are you protecting that data and ensuring you don’t become the security risk for that other company? You don’t want to bring risk to their operation, and there can be significant liability concerns if you somehow expose data or interrupt the operations of that company.
Q: If threats to our supply chains are a matter of national security, what are the potential costs to our country if our supply chains are severely disrupted?
A: Our adversaries are not going to attack us in physical space—say, in the South China Sea or someplace. They are first going to come to the homeland, if you will, and try to disrupt supply chains that maybe affect health care, or finance, or the delivery of critical goods and services. Or maybe they just get in and mess up things like our air traffic control system or the systems that control trucking around the country.
All of those have the effect of getting us to focus internally. They become political issues very quickly in our country, and the more we focus internally, the less we focus on those [actual] threats. That cultural issue to me is huge.
Then there are the real issues of not getting things to the places they need to be. That affects our economic system, which affects our national security. It is hard to think of anything that’s much more important than the supply chains that your [readers] support.
Q: Can you share some examples of how critical systems have been breached and the results of those breaches?
A: There was the attack called NotPetya that targeted Maersk, the giant global shipping agency. The total damages literally ran into the billions of dollars, and certainly Maersk wasn’t the only [company] that bore that cost, right? There were a lot of people relying on them. That was a system that was breached initially through ransomware and extortion, and then was completely locked up, preventing them from doing business the way they normally do it. We saw how quickly that cascaded through the global supply chain.
Another example was the ransomware attack on Colonial Pipeline. That one essentially targeted the company’s distribution and billing system. Colonial Pipeline could continue to move oil safely through the pipeline, but it couldn’t track how much went where.
About 25% of attacks in this sector of the economy are these types of ransomware attacks. So, make sure you practice good basic hygiene in your systems to protect them against ransomware. You can make yourself a slightly less attractive target than the next guy through basic security practices.
Q: What specifically should supply chain managers do to secure their systems and their supply chains against cyberattacks?
A: There are three quick things they should do. First, they need to identify their critical data. What data if it were exposed, manipulated, or destroyed and which system if it went down would have the biggest impact on their business? They have to prioritize their efforts to protect that data and those systems.
The second is to bolster password security by requiring two-factor authentication. The things people get very bored hearing about are nonetheless extremely important for basic security.
Then, number three, be very strict about identifying who will have access to your systems and have multiple ways to authenticate who they are and ensure that only authorized people are in those systems.
Then make certain that you have good backups for all your critical data and systems. These backups have to be done correctly. They can’t be connected to your normal system every day, because when the bad guys get into the system, they immediately look for a backup and then corrupt that as well. So, you really have to do backups and be careful about how they are managed.
Then, whether you outsource this work or handle it internally, if you are the business leader in the company, don’t delegate the risk decisions. In other words, you don’t have to be the technical expert, but you do have to know enough about it to make sure that you’re mitigating the risk that is relevant to your company. Understand the investment you are making and what the payoff is. Understand the basic terms and concepts. I encourage you to get smart, ask questions, and make sure you fully understand how your systems are protected from cyberattacks.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."