Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Companies throughout the logistics sector are focused on finding enough labor to drive trucks and stock warehouses, but too much of that current discussion is focused on thirty-something millennials instead of on the rising generations that will soon replace them, known as Generation Z and Generation Alpha, according to a panel discussion hosted by the industry group MHI.
Although the eldest members of Generation Alpha are barely 10 years old today, they will enter the workforce in just a decade, bringing with them a completely different lens for viewing technology and its place in the workforce than any previous group, speakers said in the online session “Roadmap 3.0 Panel: Transformation Age: Shaping Your Future.”
For example, by 2030, robotics and augmented reality will be in mainstream use for warehousing, manufacturing, and distribution centers, the panelists said. The session was a part of Charlotte, North Carolina-based MHI’s annual Fall Meeting, held as a virtual event this year due to the coronavirus pandemic.
Those new technologies will be natural tools—not challenging novelties—for the children now growing up around them, according to MHI. Strict definitions vary, but many researchers say millennials (also known as Generation Y) are those who were born between 1980 and 1995, followed by Generation Z with birthdays between 1996 and 2015, and Generation Alpha born between 2010 and 2025.
That workforce of the future will be more diverse, more dispersed, and more highly skilled than their predecessors, said panelist Brett Wood, CEO of Toyota Material Handling.
They have enormous potential to help companies move toward a more technology-enabled future, but many material handling firms will need to adjust their hiring strategies to recruit and retain them, Wood said. For example, the younger generation expects sustainability to be a core value of the company they join, not just a special project. Likewise, they want to work for companies that are good corporate citizens, not merely by writing checks, but by offering their employees paid time off to volunteer at local charities, for example.
For companies that can make those changes, the rewards of landing next-gen employees can be enormous, because the very foundations of technology are already changing around us, said panelist Melonee Wise, CEO of autonomous mobile robot (AMR) vendor Fetch Robotics.
In order to forecast the technology that will be in common use 10 years from now, she pointed at the heritage of today’s robotics and machine learning platforms, many of which were first developed about 20 years ago. Applying that same yardstick to the future, she said that within 5 to 10 years, we’ll see a better leveraging of hosted cloud platforms. “So don’t be afraid of the cloud. That’s where you’ll get the best leverage for your data and capabilities,” Wise said. “One of the biggest limits in robotics is computation power for executing algorithms. The only way to do it is to scale up, and you can do that in the cloud.”
Another implication of the rise of cloud computing will be new applications in edge computing, also known as “the fog” because it is neither nailed to the floor nor hovering virtually in the cloud, but living somewhere in between, like robots, Wise said.
As well as hiring a new generation of workers who are comfortable with that approach, logistics sector companies must also demand more of their leaders, said panelist Nara Eechambadi, CEO of Quaero, a customer data platform provider. “Companies need a more data-centric mindset, not just about raw data but about analytics and insights,” he said. “We need to democracize data, make it available so people can use it to make better decisions and do their jobs better.”
According to Eechambadi, American business executives too often defer to their company’s chief technology officer (CTO). Instead, they should emulate savvy European business leaders, who learn the basics of new technologies themselves. While executives don’t have to be experts, they do need to know how to ask the right questions, he said.
Fortunately, executives can start boosting their technology games right now, because the essential infrastructure is already available, in the form of cloud-based computing and open-source software development. So leaders need to focus on interoperability and adaptability with those trends, and avoid getting bogged down in trying to duplicate the same foundation within their own companies, Eechambadi said.
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
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.
Shippers are actively preparing for changes in tariffs and trade policy through steps like analyzing their existing customs data, identifying alternative suppliers, and re-evaluating their cross-border strategies, according to research from logistics provider C.H. Robinson.
They are acting now because survey results show that shippers say the top risk to their supply chains in 2025 is changes in tariffs and trade policy. And nearly 50% say the uncertainty around tariffs and trade policy is already a pain point for them today, the Eden Prairie, Minnesota-based company said.
In a move to answer those concerns, C.H. Robinson says it has been working with its clients by running risk scenarios, building and implementing contingency plans, engineering and executing tariff solutions, and increasing supply chain diversification and agility.
“Having visibility into your full supply chain is no longer a nice-to-have. In 2025, visibility is a competitive differentiator and shippers without the technology and expertise to support real-time data and insights, contingency planning, and quick action will face increased supply chain risks,” Jordan Kass, President of C.H. Robinson Managed Solutions, said in a release.
The company’s survey showed that shippers say the top five ways they are planning for those risks: identifying where they can switch sourcing to save money, analyzing customs data, evaluating cross-border strategies, running risk scenarios, and lowering their dependence on Chinese imports.
President of C.H. Robinson Global Forwarding, Mike Short, said: “In today’s uncertain shipping environment, shippers are looking for ways to reduce their susceptibility to events that impact logistics but are out of their control. By diversifying their supply chains, getting access to the latest information and having a global supply chain partner able to flex with their needs at a moment’s notice, shippers can gain something they don’t always have when disruptions and policy changes occur - options.”
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.”