Daimler Trucks North America LLC (DTNA) said last week it was expanding its test program for improving the design of electric trucks by partnering with vehicle rental giant Penske Truck Leasing Co. and third-party logistics provider (3PL)Â NFIÂ Industries.
Beginning with preliminary vehicle deliveries starting in late 2018,Reading, Pennsylvania-based Penske and Cherry Hill, New Jersey-based NFI will operate Daimler's latest models—its eCascadia heavy-duty trucks and eM2 106 medium-duty trucks. The two companies will become members of the German company's Electric Vehicle Council, sharing knowledge gathered through their use of the Freightliner Electric Innovation Fleet and participating in activities to prepare their facilities and fleet operations for Daimler's launch of full-scale electric truck production in 2021.
The strategy is part of Daimler's effort to enlist its customers in a "co-creation process" for developing commercial electric vehicles, the company said. That process will launch in three sites: Penske will take delivery of 10 eCascadias and 10 eM2s for use in California and the Pacific Northwest, NFI will operate 10 eCascadias for drayage activities from the ports of Los Angeles and Long Beach to warehouses in California's Inland Empire, and Portland, Ore.-based DTNA itself will operate electric trucks within its Product Validation Engineering (PVE) test fleet in Oregon.
Electric truck technology has been gaining momentum since Palo Alto, California-based electric car manufacturer Tesla unveiled an electrically powered tractor-trailer in 2017, saying it planned to launch production of the Tesla Semi by 2019. Industry heavyweights such as FedEx Corp., Schneider Inc., J.B. Hunt Transport Services Inc., PepsiCo Inc., and UPS Inc. have lined up to put down deposits on the vehicles, but industry experts say questions remain about how users will adapt to limits on electric vehicles' driving range, recharging facilities, and maintenance experience.
Creating an Electric Vehicle Council is a way for Daimler to answer some of the questions about industrial adoption of electric vehicle technology by collecting information from users, developing use cases with customers, and integrating commercial electric vehicle solutions into companies' supply chain operations, the company said. "Running multiple trucks in real-world applications will provide better insights for our engineers into the requirements of integrating electric commercial vehicles into fleet operations," Roger Nielsen, president and chief executive officer of DTNA, said in a statement. "We are partnering with these two customers for this phase of the co-creation process because they have use cases that closely fit the target applications we have identified."
The move is Daimler's latest step in exploring ways to meet the most promising target applications for electrified commercial vehicles, with products like Thomas Built Buses all-electric Saf-T-Liner C2 Jouley school bus and the FUSO eCanter already operating in limited trials.
Daimler says its eCascadia model will be a Class 8 tractor designed for local and regional distribution and drayage, with a range of up to 250 miles and the ability to charge up to 80 percent (providing a range of 200 miles) in about 90 minutes.
The firm's eM2 truck is intended to be an electrified solution for local distribution, pickup and delivery, food and beverage delivery, and last-mile logistics applications. It will have a range of up to 230 miles and have the ability to charge up to 80 percent (providing a range of 184 miles) in about 60 minutes.
Tesla has announced that it plans to build electric semi models with a 300-mile range and a 500-mile range, but has not given as estimate for how long they take to charge their batteries. Tesla says its vehicles will offer autonomous driving capabilities that improve fuel savings and reliability.
Thanks to their fuel cell technology, Nikola's Nikola One trucks offer a range of 500 to 1,200 miles per refueling stop, and a 20-minute refueling time to top off their tanks of hydrogen.
A whopping 90% of procurement leaders have considered or are already using AI agents to optimize operations in the year ahead, according to a survey from Icertis, a provider of artificial intelligence (AI)-powered contract intelligence tools.
CPOs are preparing for an unstable year ahead. Reducing risk and diversifying the supplier base (40%), managing supply chain disruptions and volatility (36%), and addressing inflationary pressures and cost increases (35%) are among the top five challenges anticipated in 2025 as procurement teams adjust to the new geopolitical climate.
Procurement is successfully cutting costs, but not yet driving measurable ROI. 64% of survey respondents said maverick spending has improved over the past 12 months, but 62% said procurement ROI had either stayed the same or worsened over the same period. This points to an urgent need for the partnership of AI to help optimize contract terms and automate the inclusion of revenue drivers in every contract.
AI and value creation are top priorities over ESG. Survey respondents cited leveraging AI in procurement processes and decision-making (66%) and improving speed-to-value and ROI (55%) as their top two priorities in 2025, ranking both above ESG and sustainability goals, and improving compliance.
AI partnerships are critical to overcome adoption barriers. Integration issues (88 percent) and data quality issues (75%) are detracting from procurement confidence in AI. By turning to industry leaders like Icertis with proven track records in enterprise-grade innovation, procurement teams can harness the power of contract data and seamlessly integrate purpose-built AI and large language models (LLMs) with the systems that run their business.
“We’re witnessing a substantial shift in the procurement function from reactive to proactive as CPOs look to anticipate challenges and build resilience for their businesses with new strategies and technologies,” Chris Rand, Head of Research, ProcureCon Insights, said in a release. “The next generation of leaders is not only embracing AI, but demanding a tech-first approach to sourcing and contracting processes that welcomes AI as a coworker in the ongoing race to capture more revenue.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Artificial intelligence (AI) and the economy were hot topics on the opening day of SMC3 Jump Start 25, a less-than-truckload (LTL)-focused supply chain event taking place in Atlanta this week. The three-day event kicked off Monday morning to record attendance, with more than 700 people registered, according to conference planners.
The event opened with a keynote presentation from AI futurist Zack Kass, former head of go to market for OpenAI. He talked about the evolution of AI as well as real-world applications of the technology, furthering his mission to demystify AI and make it accessible and understandable to people everywhere. Kass is a speaker and consultant who works with businesses and governments around the world.
The opening day also featured a slate of economic presentations, including a global economic outlook from Dr. Jeff Rosensweig, director of the John Robson Program for Business, Public Policy, and Government at Emory University, and a “State of LTL” report from economist Keith Prather, managing director of Armada Corporate Intelligence. Both speakers pointed to a strong economy as 2025 gets underway, emphasizing overall economic optimism and strong momentum in LTL markets.
Other highlights included interviews with industry leaders Chris Jamroz and Rick DiMaio. Jamroz is executive chairman of the board and CEO of Roadrunner Transportation Systems, and DiMaio is executive vice president of supply chain for Ace Hardware.
Jump Start 25 runs through Wednesday, January 29, at the Renaissance Atlanta Waverly Hotel & Convention Center.
That is important because the increased use of robots has the potential to significantly reduce the impact of labor shortages in manufacturing, IFR said. That will happen when robots automate dirty, dull, dangerous or delicate tasks – such as visual quality inspection, hazardous painting, or heavy lifting—thus freeing up human workers to focus on more interesting and higher-value tasks.
To reach those goals, robots will grow through five trends in the new year, the report said:
1 – Artificial Intelligence. By leveraging diverse AI technologies, such as physical, analytical, and generative, robotics can perform a wide range of tasks more efficiently. Analytical AI enables robots to process and analyze the large amounts of data collected by their sensors. This helps to manage variability and unpredictability in the external environment, in “high mix/low-volume” production, and in public environments. Physical AI, which is created through the development of dedicated hardware and software that simulate real-world environments, allows robots to train themselves in virtual environments and operate by experience, rather than programming. And Generative AI projects aim to create a “ChatGPT moment” for Physical AI, allowing this AI-driven robotics simulation technology to advance in traditional industrial environments as well as in service robotics applications.
2 – Humanoids.
Robots in the shape of human bodies have received a lot of media attention, due to their vision where robots will become general-purpose tools that can load a dishwasher on their own and work on an assembly line elsewhere. Start-ups today are working on these humanoid general-purpose robots, with an eye toward new applications in logistics and warehousing. However, it remains to be seen whether humanoid robots can represent an economically viable and scalable business case for industrial applications, especially when compared to existing solutions. So for the time being, industrial manufacturers are still focused on humanoids performing single-purpose tasks only, with a focus on the automotive industry.
3 – Sustainability – Energy Efficiency.
Compliance with the UN's environmental sustainability goals and corresponding regulations around the world is becoming an important requirement for inclusion on supplier whitelists, and robots play a key role in helping manufacturers achieve these goals. In general, their ability to perform tasks with high precision reduces material waste and improves the output-input ratio of a manufacturing process. These automated systems ensure consistent quality, which is essential for products designed to have long lifespans and minimal maintenance. In the production of green energy technologies such as solar panels, batteries for electric cars or recycling equipment, robots are critical to cost-effective production. At the same time, robot technology is being improved to make the robots themselves more energy-efficient. For example, the lightweight construction of moving robot components reduces their energy consumption. Different levels of sleep mode put the hardware in an energy saving parking position. Advances in gripper technology use bionics to achieve high grip strength with almost no energy consumption.
4 – New Fields of Business.
The general manufacturing industry still has a lot of potential for robotic automation. But most manufacturing companies are small and medium-sized enterprises (SMEs), which means the adoption of industrial robots by SMEs is still hampered by high initial investment and total cost of ownership. To address that hurdle, Robot-as-a-Service (RaaS) business models allow enterprises to benefit from robotic automation with no fixed capital involved. Another option is using low-cost robotics to provide a “good enough” product for applications that have low requirements in terms of precision, payload, and service life. Powered by the those approaches, new customer segments beyond manufacturing include construction, laboratory automation, and warehousing.
5 – Addressing Labor Shortage.
The global manufacturing sector continues to suffer from labor shortages, according to the International Labour Organisation (ILO). One of the main drivers is demographic change, which is already burdening labor markets in leading economies such as the United States, Japan, China, the Republic of Korea, or Germany. Although the impact varies from country to country, the cumulative effect on the supply chain is a concern almost everywhere.
Overall disruptions to global supply chains in 2024 increased 38% from the previous year, thanks largely to the top five drivers of supply chain disruptions for the year: factory fires, labor disruption, business sale, leadership transition, and mergers & acquisitions, according to a study from Resilinc.
Factory fires maintained their position as the number one disruption for the sixth consecutive year, with 2,299 disruption alerts issued. Fortunately, this number is down 20% from the previous year and has declined 36% from the record high in 2022, according to California-based Resilinc, a provider of supply chain resiliency solutions.
Labor disruptions made it into the top five list for the second year in a row, jumping up to the second spot with a 47% year-over-year increase following a number of company and site-level strikes, national strikes, labor protests, and layoffs. From the ILA U.S. port strike, impacting over 47,000 workers, and the Canadian rail strike to major layoffs at tech giants Intel, Dell, and Amazon, labor disruptions continued its streak as a key risk area for 2024.
And financial risk areas, including business sales, leadership transitions, and mergers and acquisitions, rounded out the top five disruptions for 2024. While business sales climbed a steady 17% YoY, leadership transitions surged 95% last year. Several notable transitions included leadership changes at Boeing, Nestlé, Pfizer Limited, and Intel. While mergers and acquisitions saw a slight decline of 5%, they remained a top disruption for 2024.
Other noteworthy trends highlighted in the data include a 146% rise in labor violations such as forced labor, poor working conditions, and health and safety violations, among others. Geopolitical risk alerts climbed 123% after a brief dip in 2023, and protests/riots saw an astounding 285% YoY increase, marking the largest growth increase of all risk events tracked by Resilinc. Regulatory change alerts, which include tariffs, changes in laws, environmental regulations, and bans, continued their upward trend with a 128% YoY increase.
The five most disrupted industries included: life sciences, healthcare, general manufacturing, high tech, and automotive, marking the fourth year in a row that those particular industries have been the most impacted.
Resilinc gathers its data through its 24/7 global event monitoring Artificial Intelligence, EventWatch AI, which collects information and monitors news on 400 different types of disruptions across 104 million sources including traditional news sources, social media platforms, wire services, videos, and government reports. Annually, the AI contextualizes and analyzes nearly 5 billion data feeds across 100 languages in 200 countries.