Weather-related disruptions are impacting many global supply chains and the communities they serve. Luckily, organizations like the American Logistics Aid Network (ALAN) are working hard to help coordinate relief efforts.
Diane Rand is Associate Editor and has several years of magazine editing and production experience. She previously worked as a production editor for Logistics Management and Supply Chain Management Review. She joined the editorial staff in 2015. She is responsible for managing digital, editorial, and production projects for DC Velocity and its sister magazine, Supply Chain Quarterly.
Weather has always been a challenge for logistics organizations and supply chains; this year is no different. The aftereffects of tornados, extreme heat waves, and Hurricane Beryl—to name a few—have caused havoc around the globe for many people and businesses. And it appears likely that weather-related disasters are only going to increase in the future.
According to the UCAR Center for Science Education, a consortium of 120 North American colleges and universities that focuses on atmospheric research, current climate models predict that the Earth’s global average temperature will rise another 4 degrees Celsius (7.2 degrees Fahrenheit) this century if greenhouse gas levels continue to rise at present rates. And according to recent news reports, the hottest day ever recorded on Earth was Monday, July 22—with the global average temperature reaching a stunning 62.87 degrees Fahrenheit.
With this projected rise in temperature, we will continue to face life-changing weather disruptions as we head into the mid-21st century. Luckily, the logistics and supply chain industries have nonprofit organizations like the American Logistics Aid Network (ALAN) they can partner with to help bring relief to disaster survivors around the world.
I had the pleasure of meeting Kathy Fulton, executive director of ALAN, at the Council of Supply Chain Management Professionals’ (CSMCP) annual EDGE conference several years ago. At the time, I was unfamiliar with ALAN and its mission, which is “to deliver hope to disaster survivors across the globe.” After speaking with Fulton and learning more about the organization, I was overwhelmed and inspired by the nonprofit’s origin story, which goes something like this: After watching the struggle to get donated food, water, and medicine into the hands of survivors following Hurricane Katrina in 2005, the supply chain community realized this was a place it could make a difference and stepped up to provide badly needed logistics expertise.
Since Hurricane Katrina, Fulton and her team of dedicated staff have worked tirelessly to spread their mission and partner with more businesses to bring relief to thousands affected by weather-related disasters both here in the U.S. and around the globe. I’m proud that our industry has stepped up to help ALAN and other organizations make lasting impacts to benefit survivors.
In a July 2024 “ALAN in Action” newsletter, Fulton wrote, “There’s a lot of amazing work that the commercial supply chain community does to facilitate humanitarian relief efforts. … We continually thank our lucky stars to have so many amazing supporters as part of our extensive ‘buddy system.’” The nonprofit offers companies two ways to contribute to the ALAN mission—with in-kind donations (providing transportation, warehouse space, material handling equipment, or shipping and packaging materials) or financial gifts.
Those in-kind and financial contributions have made an impressive impact. In 2023, for example, ALAN and its partners responded to 15 different disasters, served more than 65 nonprofits, generated more than $2.3 million of disaster aid (moving, storing, or distributing supplies for relief efforts), and reached 3.1 million people.
In addition to connecting donated supply chain services and money with those in need, ALAN has established itself as an active logistics disaster relief educator and integrator. The nonprofit provides free access to its Supply Chain Intelligence Center, an interactive map that lets users monitor the real-time status of roads, ports, and airports in disaster-stricken areas, and also hosts numerous disaster simulations. But its work is far from over.
As you and your fellow logistics and supply chain professionals work to prepare your supply chains for future disruptions, I encourage you to learn more about ALAN and other nonprofit organizations to see how your company can make a difference in disaster relief.
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.