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.
Logistics and transportation provider Ryder System Inc. on Wednesday said it had acquired a Chicago-area warehouse operator, bringing on a chain of DCs to expand its supply chain solutions business in the consumer packaged goods (CPG) division at a time when studies show that demand for U.S. warehouse space has swung to an all-time high.
Miami-based Ryder has bought Midwest Warehouse & Distribution System of Woodridge, Illinois, which operates 17 multi-client and dedicated-customer warehouses, located primarily in the greater Chicago area but also in New York, Pennsylvania, Tennessee, and Texas.
Terms of the deal were not disclosed, but Ryder said it expects the transaction to add approximately $135 million in annual revenue to its supply chain solutions business segment in 2022.
“In addition to having a significant presence in a key geography, Midwest has built a proven model for multi-client warehousing and distribution—a capability that we’ve been targeting for some time,” Steve Sensing, Ryder’s president of global supply chain solutions, said in a release. “We currently serve nine out of the top 10 U.S. food and beverage companies, and this acquisition enables us to offer those customers—as well as additional blue-chip customers in Midwest’s portfolio—even more capacity and greater flexibility.”
That hot demand is driven by a trend for logistics customers to shift their business strategies from profit toward resilience, changing from "just in time" to "just in case" inventory management, the firm said. By the numbers, U.S. net absorption reached a record high of 115 million square feet in the third quarter and 280 million square feet year-to-date, a total that is more than double the same period last year, pushing vacancy to a new low of 3.9%, Prologis found.
Ryder said its acquisition was part of a strategy to expand its third party logistics (3PL) offerings within that historically tight market.
“Multi-client warehouse environments are a great entry point for new customers looking for a 3PL that can meet their needs now and in the future,” Ryder’s Darin Cooprider, senior vice president of CPG, said in a release. “As our customers’ businesses grow and evolve, we can seamlessly transition them from multi-client warehouses to dedicated facilities. We offer dedicated transportation solutions for guaranteed capacity and a robust transportation management offering which can help mitigate market fluctuations.”
Container flows at dozens of U.S. East Coast and Gulf Coast ports shuddered to a simultaneous stop this morning when dockworkers launched a promised strike over pay levels and job automation.
The action is affecting work at major locations such as New York/New Jersey, Savannah, Houston, Charleston, Norfolk, Miami, Baltimore, Philadelphia, New Orleans, Jacksonville, Boston, Mobile, Tampa, and Wilmington. That broad span of geographic locations will affect imports and exports for industries spanning retail, automotive, agriculture, food and beverage, and manufacturing, according to an analysis by Overhaul.
Those impacts are forecast to grow rapidly with each additional day the strike continues, since more than 100 vessels are estimated to arrive at the 36 affected ports this week alone, according to analysis by supply chain visibility provider Project44. The recovery from that backup could take some time, as some shippers estimate that for every one week of strike, it will take 4-6 weeks to fully recover, the firm said.
Because of the sudden stop, logistics providers today are quickly reaching out to shippers and other clients to plan for future cargo movements. Specifically, the strike immediately froze a range of work such as the movement of import and export containers and the loading and unloading of containers, according to German maritime transportation provider Hapag-Lloyd AG. “As a result of this situation, which is beyond our control, we will need to adjust our services or temporarily suspend operations as conditions evolve. Our priority remains the protection of your cargo during this period,” Hapag-Lloyd AG said in a note to shippers.
Despite those large impacts, the timeline is unclear for finding a resolution of negotiations between the union—the International Longshoremen’s Association (ILA)—and the port management group, United States Maritime Alliance (USMX).
Under those conditions, retail and manufacturing groups have renewed their calls for their White House to step in and force workers back on the job while negotiations resume.
One of those voices came the National Retail Federation (NRF). “NRF urges President Biden to use any and all available authority and tools — including use of the Taft-Hartley Act — to immediately restore operations at all impacted container ports, get the parties back to the negotiating table and ensure there are no further disruptions,” NRF President and CEO Matthew Shay said in a release. “A disruption of this scale during this pivotal moment in our nation’s economic recovery will have devastating consequences for American workers, their families and local communities. After more than two years of runaway inflationary pressures and in the midst of recovery from Hurricane Helene, this strike will result in further hardship for American families.”
Perfect Planner, a cloud-based platform designed to streamline the material planning and replenishment process, and Flying Ship, an unmanned ground-effect maritime cargo craft, took home the second annual “3 V’s of Supply Chain Innovation Awards” tonight at the Council of Supply Chain Management Professionals (CSCMP) annual EDGE Conference in Nashville, Tennessee.
This awards contest is hosted by Supply Chain Xchange and 3 V’s framework creator and supply chain visionary Art Mesher. It serves to recognize those companies that have created technology or automation solutions that exemplify Mesher’s 3 V’s framework of “embracing variability, harnessing visibility, and competing with velocity.”
Business Innovation Award
Art Mesher, creator of the 3 V's Framework (left) and Rick Blasgen (right), former CSCMP President and CEO, present Tom Biel (center), CEO of Perfect Planner, with the 3 V's Business Innovation Award.
Susan Lacefield
Perfect Planner won the 3 V’s Business Innovation Award for its software solution that uses artificial intelligence to automatically generates daily "to-do lists" for material planners/buyers. All the “to-do’s” are ranked in order of criticality. The solution also uses advanced analytics to understand and address inventory shortages and surpluses.
The two other finalists for the Business Innovation Award were AutoScheduler AI, a predictive warehouse optimization platform, and Davinci Micro Fulfillment, which provides a micro fulfillment service out of a network for small distribution centers across the United States.
Best Overall Startup Award
Flying Ship was awarded the Best Overall Startup Award. The company has designed an unmanned flying ground-effect maritime vessel. Although the Flying Ship looks like a small aircraft or large drone, it is classified as a maritime vessel because it does not leave the air cushion over the waves, similar to a hovercraft.
According to Flying Ship CEO Bill Peterson, the craft is 75% less expensive than a traditional aircraft and “faster than anything on water.” The prototype has a wingspan of 6.5 feet and can be scaled up to deliver 10,000 pounds of freight to “anywhere with a coastline” using autonomous systems.
The other startup finalist included Arkestro, a predictive procurement orchestration solution, and Provision AI, an optimized replenishment and transportation scheduling solution.
On Monday morning at CSCMP’s 2024 EDGE Conference, Darcy MacClaren, chief revenue office, digital supply chain, at technology company SAP, lead a lively discussion with a panel of women supply chain leaders on how to recruit, retain, and empower future supply chain leaders.
Panelists included Cindy Cochovity, executive vice president of strategic development at software company FreightPath; Heather Dohrn, chief commercial officer at trucking company Dohrn Transfer Company; Jennifer Kobus, senior vice president of supply chain planning and operations at retailer Ulta Beauty; Ammie McAsey, senior vice president of customer distribution experience at pharmaceutical company McKesson; and Michelle Williams, a supply chain teacher at Clyde C. Miller Career Academy, a high school in St. Louis, Missouri.
Touching on more than just the challenges they faced in supply chain as women, the panelists spoke about creating “destination" companies—places where top talent can work, grow, and thrive. According to MacClaren, younger workers “want more than just competitive compensation—they want to feel appreciated, involved, and inspired. They seek a workplace with a strong, inclusive culture that aligns with their values, offers meaningful work, and provides an opportunity for growth and development.”
The panel covered an array of topics including how to inspire the next generation of talent, strategies for engaging and coaching young professionals, how to attract diversity, and how to address change management. In addition, they shared personal experiences that helped them achieve their leadership roles and ended with some key takeaways for the audience members.
Here’s a snapshot of action items from the discussion:
1. Ensure a diverse slate of candidates for open positions.
2. Leverage internal and external networks to find diverse candidates.
3. Nurture and mentor new hires to help them thrive.
4. Remain authentic, vulnerable, and transparent as a leader.
5. Advocate for yourself and your career progression, not just for your team.
6. Seek out mentors and advocates, especially other women in leadership positions.
7. Open doors and bring others in, regardless of your own position.
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Supply Chain Xchange Executive Editor Susan Lacefield moderates a panel discussion with Supply Chain Xchange's Outstanding Women in Supply Chain Award Winners (from left to right) Annette Danek-Akey, Sherry Harriman, Leslie O'Regan, and Ammie McAsey.
Supply Chain Xchange recognized four women who have made significant contributions to the supply chain management profession today with its second annual Outstanding Women in Supply Chain Award. The award winners include Annette Danek-Akey, Chief Supply Chain Officer at Barnes & Noble; Sherry Harriman, Senior Vice President of Logistics and Supply Chain for Academy Sports + Outdoors; Leslie O’Regan, Director of Product Management for DC Systems & 3PLs at American Eagle Outfitters; and Ammie McAsey, Senior Vice President of Customer Distribution Experience for McKesson’s U.S. Pharmaceutical division.
Throughout their careers, these four supply chain executive have demonstrated strategic thinking, innovative problem solving, and effective leadership as well as a commitment to giving back to the profession.
The awards were presented at the Council of Supply Chain Management Professionals (CSCMP) annual EDGE Conference in Nashville, Tenn. In addition to the awards presentation, the leaders discussed their leadership philosophies and career path during a panel discussion at the EDGE conference.
The surge of “nearshoring” supply chains from China to Mexico offers obvious benefits in cost, geography, and shipping time, as long as U.S. companies are realistic about smoothing out the challenges of the burgeoning trend, according to a panel today at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
Those challenges span a list including: developing infrastructure, weak security, manual processes, and shifting regulations, speakers said in a session titled “Nearshoring: Transforming Surface Transportation in the U.S.”
For example, a recent Mexican government rail expansion added lines to tourist destinations in Cancun instead of freight capacity in the Southwest, said panelist Edward Habe, Vice President of Mexico Sales, for Averitt. Truckload cargo inspections may rely on a single person looking at paper filings on the border, instead of a 24/7 online system, said Bob McCloskey, Director for Logistics and Distribution at Clarios, LLC. And business partners inside Mexico often have undisclosed tier-two, tier-three, and tier-four relationships that are difficult to track from the U.S., said Beth Kussatz, Manager of Northern American Network Design & Implementation, Deere & Co.
Still, dedicated companies can work with Mexican authorities, regulators, and providers to overcome those bottlenecks with clever solutions, the panelists agreed. “Don’t be afraid,” Habe said. “It just makes sense in today’s world, the local regionalization of manufacturing. It’s in our interest that this works.”