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.
The Teamsters labor union and the fleet owners’ trade group American Trucking Associations (ATA) rarely agree on matters of freight and transportation policy, but their interests aligned this week when they both praised Congress’ vote to pass the $715 billion “INVEST in America Act.”
The infrastructure bill, known formally as H.R.3684, won passage Thursday in the House of Representatives and now awaits Senate action on a comparable bill. The legislation is a transportation reauthorization and water infrastructure bill that invests in: roads, bridges, and safety ($343 billion); transit ($109 billion); passenger and freight rail ($95 billion); drinking water infrastructure & assistance ($117 billion); and wastewater infrastructure ($51.25 billion).
In a statement, ATA President and CEO Chris Spear encouraged the Senate to advance companion legislation this summer and pledged to support those investments. “By passing the INVEST in America Act, the House has taken a significant step toward enacting the kind of comprehensive infrastructure package our nation needs. The investments in this bill will enable the country to grow, not just economically, but they will improve safety and the environment,” Spear said in a release.
Among other improvements, the bill would focus on the estimated 47,000 bridges in the national highway system that are in need of substantial repair or replacement, according to a statement by U.S. Rep. Peter DeFazio (D-OR), the chair of the Committee on Transportation and Infrastructure.
“We can lead again, like we did in the 60s, and the 70s, when our infrastructure was the envy of the world. We were number one, we're now number 13. And falling fast,” DeFazio said in a press conference. “We're investing one half of 1% of our GDP in infrastructure, China is investing six [and] other competitor nations are investing between three and four. We cannot afford to be absent from this debate anymore. States are trying to do it on their own. They can't do it on their own. This is a federal system. It's a federal problem. Its international competitiveness, it’s jobs, it’s manufacturing.”
The Teamsters also applauded the bill, although that group cited different benefits, saying the INVEST in America Act would reform the trucking sector by requiring all motor carriers to certify that they comply with all labor and safety laws prior to renewing or acquiring their registration with the U.S. Department of Transportation (DOT).
"The motor carrier accountability provision is a huge step forward in holding trucking and delivery companies, including Amazon's growing fleet, accountable for keeping workers safe," Teamsters General President James P. Hoffa said in a release. "Under this new legislation, Amazon, its Delivery Service Partners, and other trucking companies across the country, would be responsible for any labor law and workplace safety violations when they apply for their DOT registration."
According to the Teamsters, that provision also requires the DOT to formally study the correlation between compensation and safety in all trucking and delivery operations nationwide. "This is not only a victory for Teamsters, but for all drivers in the trucking and delivery industries. Our roads and communities will be safer thanks to this legislation,” Hoffa said.
Despite that support from different quarters of the transportation industry, the bill also has its detractors.
Trade groups representing fuel retailers and truckstops said they oppose the act for provisions they say undermine new investment in electric vehicle charging, according to a joint statement from NATSO, representing the nation’s truckstops and travel plazas, NACS, the National Association of Convenience Stores, and SIGMA: America’s Leading Fuel Marketers.
“NATSO is disappointed that we must reject a federal highway bill for the second time because it contains the same harmful provisions that will discourage the private sector from making investments in electric vehicle charging infrastructure,” NATSO President and CEO Lisa Mullings said in a release. “NATSO wants to work with lawmakers to expand the market’s transition to alternative fuels, including EV charging. With a few key improvements to these provisions, NATSO and the entire retail fuel industry would otherwise be able to support this important legislation.”
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
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.”
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.