Initially launched in the U.K. in February, the “GoGreen Plus” service enables customers to reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel (SAF). According to DHL, shippers also have the option to tailor the CO2e reduction they want to achieve and the amount of SAF they use, down the level of individual shipments. CO2e is a measure of carbon dioxide equivalent, including both that gas itself and other greenhouse gasses.
Florida-based DHL said the service follows the company’s recent survey of nearly 2,500 SMEs, including DHL customers. Of all respondents, 95% said sustainability is important to their business, with almost half (48%) believing it’s extremely important. However, when asked about the biggest challenge to achieving sustainable goals, 42% said the overall investment is the main obstacle, and 11% said they had no clue where to start.
“Consumers have an increasing interest in environmentally friendly products and services, and businesses can cultivate brand loyalty by making an effective commitment to environmental sustainability," Greg Hewitt, CEO of DHL Express U.S., said in a release. "We take pride in assisting our customers as they build more sustainable supply chains, and in offering guidance to SMEs that may lack the necessary means to take that first sustainability leap on their own.”
2024 has been quite a year. In addition to the usual challenges, supply chain leaders have had to contend with two major wars, several devastating hurricanes and storms, dock strikes, a rail strike, a freight recession, an uneven economy, and an election cycle unlike any other. That’s a lot packed into one year.
We can all use a chance to catch our breath. As the holidays approach, we at DC Velocity thought it would be fun to take a more whimsical approach to this month’s ThoughtLeader Q&A and interview Dasher the reindeer.
Dasher made his debut as one of eight named reindeer in Clement C. Moore’s classic 1823 poem, “A Visit from St. Nicholas.” As we all know from the poem, Dasher and his fellow magical reindeer—Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen—provide crucial transportation support for the Jolly Old Elf’s Christmas Eve mission, pulling the sleigh full of toys for delivery to children around the world. What many people might not realize is that Dasher is also a supply chain expert. His duties require him to keep up with the latest trends in distribution and logistics to assure that the gifts all get delivered on time, to the right address, and damage-free.
So in the spirit of the holidays, we used a bit of magic ourselves in the form of generative artificial intelligence (GenAI) to conduct a personal interview with this very important reindeer. You may ask why we didn’t choose Rudolph. Simply put, he is both a copyrighted character and much too much of a celebrity these days to bother with the likes of us.
As we close out this rather tumultuous year, we hope you will get some joy from reading this fictional interview with a beloved courier.
Q: Thank you for joining us today, Dasher. It’s a pleasure to have you here to discuss some of the supply chain challenges that affect Christmas deliveries. How are you doing this holiday season?
A: Thank you for having me! I’m doing well, though the holiday season has certainly brought its own set of challenges this year. There’s always a bit of magic in the air, but the realities of the supply chain have been a hot topic.
Q: Let’s dive right in. Can you tell us about some of the specific challenges you’ve faced with deliveries this year?
A: Sure! One of the biggest challenges has been the delays in shipping routes, particularly through the Red Sea. It’s a critical pathway for many goods that we rely on for Christmas supplies, including toys and decorations. When there are disruptions in that region—whether due to geopolitical tensions or natural events—it impacts the entire supply chain.
Q: What kinds of delays are we talking about?
A: Well, shipping times have increased significantly. For instance, shipments that used to take a few weeks now can stretch into months. This means that the toys and gifts that Santa relies on for Christmas Eve deliveries are arriving late, which creates a ripple effect throughout our operations.
Q: Has the increase in ocean shipping costs contributed to these challenges as well?
A: Definitely. Shipping costs have soared this year, mainly due to a combination of high demand and limited capacity. When ocean freight rates spike, it puts pressure on everyone involved—from manufacturers to retailers to us at the North Pole. We have to be strategic about which items to prioritize, and that can be a difficult decision when so many children are counting on their Christmas gifts.
Q: How are you and Santa managing these increased costs?
A: We’ve had to get creative. Santa has always believed in the spirit of giving, but now we’re also focusing on efficiency. This includes sourcing materials locally whenever possible and optimizing our delivery routes.
Q: Have you encountered any other world situations that have impacted your operations?
A: Certainly. The effects of the pandemic have lingered longer than we hoped. Labor shortages at ports and in the shipping industry have resulted in fewer hands to move goods. And then there are the fluctuations in the supply of raw materials. If the materials for toys aren’t available, that affects production timelines and, ultimately, our ability to deliver gifts on time.
Q: That’s a lot to navigate. How do you maintain morale among your team members during such challenging times?
A: Communication is key. We’ve worked hard to keep spirits high at the North Pole. We remind everyone why we do this—it’s about bringing joy to children all over the world. Regular team meetings, festive gatherings, and a strong emphasis on teamwork have helped us push through. Plus, everyone loves a good challenge!
Q: It must be heartwarming to see all those efforts come together. How do you ensure that Santa is kept informed about these supply chain challenges?
A: Santa is very hands-on. We have daily briefings where we discuss updates on shipments, toy production timelines, and any other issues that arise. He’s always willing to brainstorm solutions, and he has a knack for inspiring us to think outside the box. We’ve had to adjust our strategies more frequently than ever, and Santa’s leadership makes a big difference.
Q: With all these logistical challenges, do you think there’s a chance some children might not receive their gifts on time?
A: Unfortunately, yes. We do our best to ensure that everyone gets their presents, but this year, we’ve had to communicate with parents in some cases about potential delays. It’s heartbreaking, but we always remind everyone that the spirit of Christmas is about togetherness and love, not just gifts.
Q: That’s a beautiful perspective. Given the unpredictability of the supply chain, do you have any backup plans in place?
A: Absolutely. We have contingency plans for various scenarios. For example, we stocked up on popular items earlier than usual and created a priority list for deliveries. We also maintain close relationships with our partners to quickly adapt if something goes awry. Flexibility is crucial in this environment.
Q: Speaking of flexibility, has technology played a role in easing these challenges?
A: Technology has been a game-changer. We use sophisticated tracking systems to monitor shipments in real time, which helps us make informed decisions quickly. Plus, data analytics allow us to anticipate trends and shifts in demand, so we can prepare better for the unexpected.
Q: That’s impressive! With so many changes happening, do you foresee any long-term shifts in how you operate during the holiday season?
A: Definitely. We’re learning valuable lessons this year that will shape our operations in the future. We’re likely to focus even more on local sourcing and sustainable practices. The pandemic has made us all rethink supply chain resilience and how we can reduce our dependence on long-distance shipping.
Q: That’s a proactive approach. As you prepare for Christmas Eve, do you have any particular strategies to ensure that the night goes smoothly despite these challenges?
A: We’ve always had a well-rehearsed plan for Christmas Eve. This year, we’re building in some extra buffer time for potential delays. We’ll also rely heavily on our network of helper elves, who have been trained to adapt quickly. Rudolph’s shiny nose will guide us through any weather issues, and we’ll adjust our routes as needed.
Q: It sounds like you’re ready for anything! Looking ahead, do you think the global situation will stabilize, allowing for smoother operations in the future?
A: I hope so! It’s hard to predict exactly how things will unfold, but I believe that industries will adapt and evolve. The challenges we’ve faced have pushed us to innovate, and I think that will serve us well moving forward. With resilience and teamwork, we can navigate whatever comes our way.
Q: Wise words, Dasher. Before we wrap up, do you have any messages for children who may be worried about their gifts this year?
A: Absolutely! To all the children out there: Remember that the true magic of Christmas comes from love, kindness, and togetherness. Gifts are wonderful, but they’re not everything. Whether you find something under the tree or not, what matters most is the spirit of the season. Keep believing, and we’ll do our best to spread joy!
Q: That’s a lovely message. Thank you for sharing your insights with us today, Dasher. We wish you, Santa, and the entire team at the North Pole the best of luck this holiday season!
A: Thank you! It’s been a pleasure. And remember, no matter the challenges, the spirit of Christmas will always shine bright!
Amazon package deliveries are about to get a little bit faster—thanks to specially outfitted delivery vans and the magic of AI.
Last month, the mega-retailer introduced its Vision-Assisted Package Retrieval (VAPR)solution, an AI (artificial intelligence)-powered system designed to cut the time it takes drivers to retrieve packages from the back of the van.
According to Amazon, VAPR kicks in when the van arrives at a delivery location, automatically projecting a green “O” on all packages that will be delivered at that stop and a red “X” on all other packages. Not only does that allow the driver to find the right package in seconds, the company says, but it also eliminates the need to organize packages by stop, read and scan labels, and manually check the customer’s name and address to ensure they have the right parcels. As Amazon puts it, “[Drivers] simply have to look for VAPR’s green light, grab, and go.”
The technology combines artificial intelligence (AI) with Amazon Robotics Identification (AR-ID), a form of computer vision originally developed to help fulfillment centers speed up putaway and picking operations. Linked to the van’s delivery route navigation system, AR-ID replaces the need for manual barcode scanning by using specially designed light projectors and cameras mounted inside the van to locate and decipher multiple barcodes in real time, according to the company.
In field tests, VAPR reduced perceived physical and mental effort for drivers by 67% and saved more than 30 minutes per route, Amazon says. The company now plans to roll out VAPR in 1,000 Amazon electric delivery vans from Rivian by early 2025.
We are now into the home stretch of the holiday shopping season—the biggest retail bonanza of the year. By now, many shoppers have already made their purchases and are putting the final touches on their gifts. Some of us procrastinators have not even started. Isn’t that why online shopping was invented?
Here are some interesting facts about Americans’ holiday shopping patterns. The National Retail Federation estimates that consumer spending for the holidays will average $902 per person. Some $641 of that will be for gifts, with the remainder spent on food, decorations, and other holiday items.
Many of those purchases will be online, where more than 21% of all consumer transactions now occur. A recent report from DHL eCommerce reveals that 61% of U.S. shoppers buy online at least once a week, and 84% browse online one or more times a week.
We also buy a range of goods that way—63% buy clothing and footwear through e-commerce sites, according to the DHL report. Next most popular were consumer electronics at 33%, followed by health supplements at 30%.
That first category is interesting, because apparel and footwear are also among the most widely returned items, especially when bought as gifts. Either they don’t fit properly, or they aren’t quite what the recipients had in mind—which means that each January, retailers must cope with a flood of returns.
Of course, returns are not a seasonal phenomenon; consumers return goods—particularly those bought online—year round. Between 25% and 35% of all goods purchased via e-commerce are returned, depending on whose figures you believe. By comparison, only 8% to 9% of products bought in stores, where we can see the actual items and try on clothing and shoes, end up being returned.
Try-ons are not possible with apparel sold online, which leads to the common practice of “bracketing,” where customers order an item in multiple sizes, pick the one that fits best, and send back the rest. The seller typically absorbs the reverse logistics costs—and those costs can be significant. The retail value of returned consumer items totals around $745 billion each year. According to Narvar, a company that helps retailers manage the post-purchase customer experience, more than 90% of returned products have nothing wrong with them. They simply weren’t wanted or needed.
So as you make those final holiday selections, help your fellow supply chain professionals. Choose your gifts wisely to reduce the chances they’ll be returned. And remember, gift cards are always nice.
The private equity-backed warehousing and transportation provider Partners Warehouse has acquired PSS Distribution Services, a third-party logistics (3PL) provider specializing in warehousing, distribution, and value-added services on the East Coast, the company said today.
The move expands Partners Warehouse’s reach from its current territories, which stretch from its Elwood, Illinois, headquarters to its two million square feet of warehousing and rail transloading facilities across eight locations in Illinois, California, and Dallas.
In addition to adding East Coast operations to that footprint, the move will also strengthen Partners’ expertise in the food and ingredients sector, enhance its service capabilities, and improve the business’ capacity to support existing and new clients who require a service provider with a national footprint, the company said.
From its headquarters in Jamesburg, New Jersey, PSS brings experience across industries including food, grocery, retail, food service, direct store distribution (DSD), and e-commerce. The company is known for its state-of-the-art facilities and food-grade warehousing options.
“This acquisition marks a significant milestone in Partners Warehouse’s expansion strategy,” Nick Antoine, Co-Founder, Co-CEO, and Managing Partner of Red Arts Capital, said in a release. “The addition of PSS enables us to grow our capacity and broaden our service offerings, delivering greater value to our clients at a time when demand for warehousing space continues to rise.”
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Photo courtesy of the Association of Equipment Manufacturers (AEM)
Think you know a lot about manufacturing? Your hard-won knowledge might be about to pay off in the form of a brand-new pickup truck. No, you don’t have to physically assemble the vehicle. But you could win a Ford F-150 by playing an industry-themed online game.
The organization says the game is available to anyone in the continental U.S. who visits the tour’s web page, www.manufacturingexpress.org.
The tour itself ended in October after visiting 80 equipment manufacturers in 20 states. Its aim was to highlight the role that the manufacturing industry plays in building, powering, and feeding the world, the group said in a statement.
“This tour [was] about recognizing the essential contributions of U.S. equipment manufacturers and engaging the public in a fun and interactive way,” Wade Balkonis, AEM’s director of grassroots advocacy, said in a release. “Through the Manufacturing Challenge, we’re providing a unique opportunity to raise awareness of our industry and giving participants a chance to win one of the most iconic vehicles in the country—the Ford F-150.”