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.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."