Lessons from the ultimate last-mile delivery expert: interview with Dasher the reindeer
Like the course of true love, holiday peak season never runs smooth—but 2024 took the challenges to a whole new level. To find out how one major player navigated the obstacles, we invoked the magic of GenAI to get the inside story.
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.
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!
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.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”
As the Trump Administration threatens new steps in a growing trade war, U.S. manufacturers and retailers are calling for a ceasefire, saying the crossfire caused by the new tax hikes on American businesses will raise prices for consumers and possibly trigger rising inflation.
Tariffs are taxes charged by a country on its own businesses that import goods from other nations. Until they can invest in long-term alternatives like building new factories or finding new trading partners, companies must either take those additional tax duties out of their profit margins or pass them on to consumers as higher prices.
The Trump Administration on Thursday announced it may impose “reciprocal tariffs” on any country that currently holds tariffs on the import of U.S. goods. That step followed earlier threats to apply tariffs on the import of steel and aluminum beginning March 12, another plan to charge tariffs on the import of materials from Canada and Mexico—now postponed until early March—and new round of tariffs on imports from China including a 10% blanket increase and the elimination of the “de minimis” exception for individual items under a value of $800 each.
Various industry groups say that while the Administration may have legitimate goals in ramping up a trade war—such as lowering foreign tariff and non-tariff trade barriers—applying a strategy of hiking tariffs on imports coming into America would inflict economic harm on U.S. businesses and consumers.
“This tariff-heavy approach continues to gamble with our economic prosperity and is based on incomplete thinking about the vital role ethical and fairly traded imports play in the prosperity,” Steve Lamar, president and CEO of The American Apparel & Footwear Association (AAFA) said in a release. “Putting America first means ensuring predictability for American businesses that create U.S. jobs; affordable options for American consumers who power our economy; opportunities for farmers who feed our families; and support for tens of millions of U.S. workers whose trade dependent jobs make our factories, our stores, our warehouses, and our offices function. Sweeping new tariffs — a possible outcome of this exercise — instead puts America last, raising costs for American manufacturers for critical inputs and materials, closing key markets for American farmers, and raising prices for hardworking American families.”
A similar message came from the National Retail Federation (NRF), whose executive vice president of government relations, David French, said: “While we support the president’s efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains. It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets.”
The logistics tech firm Körber Supply Chain Software has a common position. "The imposition of new tariffs, or the suspension of tariffs, introduces substantial challenges for businesses dependent on international supply chains. Industries such as automotive and electronics, which rely heavily on cross-border trade with Mexico and Canada, are particularly vulnerable,” Steve Blough, Chief Strategist at Körber Supply Chain Software, said in an emailed statement. “Supply chains that are doing low-value ecommerce deliveries will have their business model thrown into complete disarray. The increased costs due to tariffs, or the increased costs in processing time due to suspensions, may lead to higher consumer prices and processing times.”
And further opposition to the strategy came from the California-based IT consulting firm Bristlecone. “Tariffs or the potential for tariffs increase uncertainty throughout the supply chain, potentially stalling deals, impacting the sourcing of raw materials, and prompting higher prices for consumers,” Jen Chew, Bristlecone’s VP of Solutions & Consulting, said in a statement. “Tariffs and other protectionist economic policies reflect an overarching trend away from global sourcing and toward local sourcing and production. However, despite the perceived benefits of local operations, some resources and capabilities may simply not be available locally, prompting manufacturers to continue operations overseas, even if it means paying steep tariffs.”