In the business world, we are always trying to hit a moving target. As the Greek philosopher Heraclitus said, "The only thing that is constant is change." In a plugged-in, connected age, change comes rapidly. The change can be from macro sources like economic recession, or from micro sources like reorganization within your supply chain. Learning how to adapt to change is a necessary ingredient for success, both in business and in your career.
Some change begins so gradually you do not see it creeping up on you. Other change comes as a shock—a jolt out of nowhere. Either way, when change is occurring the first question you need to ask is, "How does this change alter my organization's current mission and goals?" For instance, if you are a film maker and digital cameras are gaining widespread acceptance, then your organization's goals—indeed, its entire strategy—will be affected. If you are changing from a centralized to a decentralized supply chain model, the goal remains the same but the tactics for achieving it will be different. During periods of change, we are called on to manage not just what is changing—be it a matter of policy, process, or personnel—but also to manage how the change is made and implemented. Here are some thoughts on how you can not just survive but also thrive in such times of transition.
Steps to success
Change management starts with a call to action—pointing out the problem or opportunity that you believe is creating a pressing need for change. A call to action emanates not only from perceptions about the changing environment, but also from supporting facts from credible sources. External and unbiased third-party sources help support the change initiative's credibility.
To get things moving, it's necessary to establish a forum for people and organizations that will be most impacted by the change. This is an arena for people to exchange ideas, discuss merits and pitfalls, and solicit feedback and support. Brainstorming and playing "devil's advocate" are useful for bringing creative ideas to the surface and arriving at the best way to implement the needed change.
Get help by asking internal experts for their assistance. Transitions often affect many functions of the company, such as finance, accounting, human resources, and others. Functional specialists can be useful advocates for the change; they can even become change champions by actively promoting the benefits of moving in a new direction.
Supply chain professionals understand the adage "plan the work, and work the plan." So it won't surprise you that any significant change initiative needs a plan of action. This is a step-by-step guide to implementing your change initiative. Among other things, it should ensure role clarity for all the key players as well as lay out the actions that need to be executed. As you develop this plan, be on the lookout for smaller, digestible actions that accelerate change and demonstrate that the plan is working. John Kotter, a professor at Harvard Business School and an authority on leadership and change, calls these "short-term wins," and they really help validate the value of the effort. Also, don't forget to celebrate success as each milestone is achieved. This helps your team to maintain positive energy and demonstrates just how much you value them.
Of course, you need to be a believer. You must believe at a deep, gut level that rejecting change is not an option. Your followers will be looking at you constantly to gauge whether you still believe in the mission. This is especially true when the going gets rough, which it almost certainly will. You can't fake belief. If you don't believe in your mission with your full heart and mind, don't move forward.
Within the change forum, dissent is normal and can be highly valuable. People who are skeptical of the mission can play a contrarian role within the group. A skeptic can give voice to what others may be thinking but are not secure enough to say. Skeptics help the group see different perspectives and consider other trains of thought. The result can be a more thoughtful—and ultimately more successful—response to the challenges the change presents.
The opposite of the official dissenter is an official proponent. To gain greater acceptance for the transition plan, it's invaluable to have someone who can spread the good word about it. This plan ambassador ideally will be a high-profile person, someone who commands respect and consideration. Gauging a potential ambassador's affinity for your change initiative can be delicate. The group leader should initially approach high-profile people privately to get a sense of their perspective. If this "behind the curtain" meeting is a success, then a meeting with the group is warranted. The group's ability to increase an advocate's enthusiasm for the plan directly affects the advocate's show of enthusiasm about the group and its initiative elsewhere.
There can and should be more than one official proponent. Your immediate boss should be your first-line proponent, and he or she should advocate for outreach to the rest of the firm. The boss's public support is crucial for acceptance and ultimate success.
When you have advocates, especially one from outside the inner circle, be sure to keep them informed. When you stay in touch, you refresh their enthusiasm for your mission. Their interest is sustained and your cause remains front of mind. Tailor the messages you send them to hit their key priorities. See the issue through their eyes and show them the value that will accrue to their area's benefit.
Other advocates can be recruited around the water cooler, in the hallway, and on the elevator. You can turn a casual meeting into a quick promotion for your change initiative. Prepare a brief description of your plan for general dissemination, and use it. This "quick pitch" will spread the word and help you keep your finger on the pulse of co-workers' attitudes. Their thoughts may provide unique and useful insights.
Just as positive messages can run through an organization, so can negative ones. Be sure to address disinformation immediately. Logically and thoroughly meet any negative "press" head on. For instance, if you hear someone say that the transition will cause another group to miss budget, show how your plan will ultimately be better for the company than the status quo. Help the organization see the bigger picture. This is influencing as a high art.
Be responsive to change
Change is not easy. As mentioned earlier (it can't be mentioned too often) be sure to show appreciation when someone endorses your plan. Anyone who helps or advances a plan for change deserves to be thanked, ideally in a public way. Positive energy breeds more positive energy.
Last, when the transition is complete, consider making permanent adjustments to job descriptions, evaluations, and benchmarks. The game has changed and it should be documented for the future.
Charles Darwin, the father of evolution theory, said, "It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change." We all need to take those wise words to heart.
Documented processes and procedures are an important aspect of any successful distribution operation. Without process documentation, product gets shipped and not billed, customer orders and items get lost, and employees get upset. Distribution outfits need some form of step-by-step manuals, workflow diagrams, or digital instructions to ensure that operations run smoothly, consistently, and efficiently. However, creating and updating these documents has, historically, been time-consuming and resource-intensive.
Generative artificial intelligence (Gen AI)—a subset of AI that can create content, such as text, images, videos, and other media—can help. This cutting-edge technology has the potential to streamline the process of creating documented processes and procedures. As a result, it can become a cornerstone for companies looking to optimize their distribution operations, streamline training processes, and provide a superior customer experience. What once seemed like a distant futuristic possibility is now a crucial tool for the modern distribution industry.
The cornerstone of consistency
Documented procedures standardize operations across all levels of the distribution chain, from warehouse workers to managers. When employees follow clearly defined steps, consistency in task execution becomes a given. This is especially important in large distribution centers where employees might work on similar tasks but in different shifts. Standardization helps maintain a consistent level of quality, regardless of who is performing the job. This not only enhances operational efficiency but also minimizes errors.
In addition to providing consistency, documented processes and procedures have several other benefits such as streamlining training and onboarding, enhancing knowledge retention, improving performance evaluation, aiding in continuous improvement efforts, and ensuring compliance with industry regulations.
Training and onboarding:Training new employees is a critical phase in any organization, but even more so in the distribution sector, where complex logistics and time-sensitive processes are involved. Clear, documented procedures make it easier to onboard new staff, reducing the learning curve and ensuring they can contribute effectively in a shorter amount of time. These materials are a reliable resource for employees, allowing them to refer back whenever they are uncertain about the correct procedure for a task.
In the past, training often depended on experienced employees showing new hires the ropes, which can be time-consuming and inconsistent. Well-documented processes eliminate this dependency and ensure that training is uniform across the board, leading to faster, more efficient onboarding.
Knowledge retention: One of the biggest challenges many organizations face is the loss of knowledge when experienced employees leave. A robust system of documented procedures acts as an institutional memory, preserving critical knowledge and ensuring that valuable insights and practices are not lost when staff turnover occurs. This continuity is essential for maintaining long-term operational efficiency.
Performance evaluation and continuous improvement: Standardized, documented procedures allow for more objective performance evaluations. Managers can measure employee performance against clearly defined expectations, identifying areas of strength and opportunities for improvement. In addition, these documents serve as a foundation for continuous improvement efforts. By periodically reviewing and refining procedures, businesses can adapt to changing market conditions, adopt new technologies, and optimize workflows to stay competitive.
Compliance and auditing: In today’s regulatory environment, compliance is non-negotiable. Documented procedures are vital in ensuring that a company complies with industry regulations. When processes are clearly outlined and followed, it is easier to demonstrate adherence to safety standards, labor laws, and environmental regulations. This helps avoid costly fines and simplifies the auditing process, reducing the time and resources required for internal and external audits.
The perils of unclear instructions
When warehouses operate without clear, well-documented processes, they expose themselves to risks and inefficiencies. Unclear expectations create uncertainty, which can ripple across the entire operation. Here are some common examples:
Inconsistent performance and increased error rates: Employees may interpret tasks differently without standardized guidelines, leading to inconsistent performance. Variations in completing tasks can result in some excellent but many suboptimal outcomes. For instance, one employee may prioritize speed, while another focuses on accuracy. This inconsistency affects productivity and can lead to a higher error rate in order fulfillment, inventory management, or customer service.
Even small errors can have big consequences in a fast-paced warehouse environment. Incorrectly filled orders, damaged goods, or delayed shipments can damage customer relationships and result in financial losses.
Higher training costs and reduced productivity: When processes are not clearly defined, training new employees becomes more resource-intensive. Without a formalized training program supported by documented procedures, trainers often have to spend more time demonstrating tasks and correcting mistakes. This increases the cost of training and diverts experienced staff away from their regular duties, thus lowering overall productivity.
Customer dissatisfaction: Customer experience is a key differentiator in today’s competitive marketplace. Consistency in processes directly impacts how customers perceive a brand. A positive, uniform experience across multiple interactions strengthens brand identity and fosters loyalty. Customers are more likely to become repeat buyers when they know they can rely on the distributor to deliver on its promises, whether that’s order accuracy, speed of delivery, or responsiveness to inquiries.
Inconsistent service inevitably leads to customer dissatisfaction. Customers expect a reliable and uniform experience, especially regarding delivery times, product availability, and order accuracy. A lack of clear, repeatable processes can make it more likely for a company to fail to meet customer expectations, leading to complaints, returns, and, ultimately, loss of business.
Difficulty scaling operations: Scaling operations becomes increasingly difficult when there is no standardized playbook to follow. As distribution centers grow or a company expands to new locations, replicating success becomes challenging if processes are unclear.
Scalable, consistent processes also allow companies to grow their operations while maintaining the same level of service quality. This scalability becomes a significant competitive advantage in a sector where margins are thin and efficiency is paramount. By ensuring that processes are repeatable and effective, companies can focus on expanding their reach and entering new markets without sacrificing quality.
The potential role of Gen AI
Gen AI is a game changer for distribution operations that are looking to create, update, or optimize their process documentation. Gen AI can drastically reduce the time and effort required to develop comprehensive procedural guidelines by automating and enhancing the content creation process. (Figure 1 above lists the main benefits of using Gen AI to create process documentation and procedures.)
One of the most significant advantages of Gen AI is its ability to generate content quickly. Whether creating initial drafts of process documents or updating existing procedures, AI can handle these tasks in a fraction of the time it would take a human team. AI can also customize the content for specific roles, locations, or scenarios, ensuring the documentation is relevant and applicable to various operational segments.
Gen AI can create documentation in multiple formats, including text-based manuals, visual flowcharts, and instructional videos. This flexibility allows companies to create a variety of training materials that cater to different learning styles and ensures that employees can access information in the format that works best for them. Furthermore, as procedures evolve over time, AI can easily update these documents, keeping them current and aligned with the latest operational requirements.
Best practices and considerations
While the potential benefits of Gen AI are clear, successful implementation requires careful planning and strategic execution. The following are some key considerations that companies must keep in mind as they use Gen AI tools in real-world situations:
Human oversight: AI-generated content should not replace human expertise but rather complement it. Subject matter experts must review AI-generated documents to ensure their accuracy and relevance.
Data quality: AI systems need access to high-quality data to be effective, so ensuring that your organization’s operational data is up-to-date is critical.
Ethical considerations: As with any AI system, ethical considerations must be taken into account, particularly regarding potential biases in the content.
Employee training: Companies must also invest in training their employees to use AI tools effectively, ensuring that they can access and apply the information generated by AI systems.
Security and privacy: As AI systems rely on sensitive operational data, robust security measures are necessary to protect this information.
Change management: Introducing AI significantly changes how employees access and use procedural documentation. Clear communication and training are essential to ensure smooth adoption and to help employees see AI as a tool that enhances their work rather than a threat to their jobs.
Embracing the future of distribution
The distribution sector is on the brink of a significant transformation in today's fast-paced, ever-evolving business landscape. The driving force behind this change is the rise of artificial intelligence and, more specifically, generative AI.
It’s important to realize that Gen AI is not just a tool for the future—it is a tool that can already be used today to improve distribution processes. Companies can create more consistent, efficient, and scalable operations by embracing this technology. AI is poised to revolutionize how companies document and update their distribution processes, which in turn can streamline training and onboarding and improve customer satisfaction and operational efficiency.
As the industry moves forward, those who integrate Gen AI into their operations will be better positioned to meet the demands of a dynamic marketplace. The future of distribution lies in the partnership between human expertise and AI, creating a synergy that drives innovation and sets a new standard for excellence in the field.
About the author: Steve Levy is the vice president of Enterprise Architecture for the distribution industry at Infor. Before joining Infor, he honed his skills and expertise working in the distribution industry and was the executive vice president at a wholesale paper distributor.
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.”
Warehouse automation orders declined by 3% in 2024, according to a February report from market research firm Interact Analysis. The company said the decline was due to economic, political, and market-specific challenges, including persistently high interest rates in many regions and the residual effects of an oversupply of warehouses built during the Covid-19 pandemic.
The research also found that increasing competition from Chinese vendors is expected to drive down prices and slow revenue growth over the report’s forecast period to 2030.
Global macro-economic factors such as high interest rates, political uncertainty around elections, and the Chinese real estate crisis have “significantly impacted sales cycles, slowing the pace of orders,” according to the report.
Despite the decline, analysts said growth is expected to pick up from 2025, which they said they anticipate will mark a year of slow recovery for the sector. Pre-pandemic growth levels are expected to return in 2026, with long-term expansion projected at a compound annual growth rate (CAGR) of 8% between 2024 and 2030.
The analysis also found two market segments that are bucking the trend: durable manufacturing and food & beverage industries continued to spend on automation during the downturn. Warehouse automation revenues in food & beverage, in particular, were bolstered by cold-chain automation, as well as by large-scale projects from consumer-packaged goods (CPG) manufacturers. The sectors registered the highest growth in warehouse automation revenues between 2022 and 2024, with increases of 11% (durable manufacturing) and 10% (food & beverage), according to the research.
New Jersey is home to the most congested freight bottleneck in the country for the seventh straight year, according to research from the American Transportation Research Institute (ATRI), released today.
ATRI’s annual list of the Top 100 Truck Bottlenecks aims to highlight the nation’s most congested highways and help local, state, and federal governments target funding to areas most in need of relief. The data show ways to reduce chokepoints, lower emissions, and drive economic growth, according to the researchers.
The 2025 Top Truck Bottleneck List measures the level of truck-involved congestion at more than 325 locations on the national highway system. The analysis is based on an extensive database of freight truck GPS data and uses several customized software applications and analysis methods, along with terabytes of data from trucking operations, to produce a congestion impact ranking for each location. The bottleneck locations detailed in the latest ATRI list represent the top 100 congested locations, although ATRI continuously monitors more than 325 freight-critical locations, the group said.
For the seventh straight year, the intersection of I-95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, is the top freight bottleneck in the country. The remaining top 10 bottlenecks include: Chicago, I-294 at I-290/I-88; Houston, I-45 at I-69/US 59; Atlanta, I-285 at I-85 (North); Nashville: I-24/I-40 at I-440 (East); Atlanta: I-75 at I-285 (North); Los Angeles, SR 60 at SR 57; Cincinnati, I-71 at I-75; Houston, I-10 at I-45; and Atlanta, I-20 at I-285 (West).
ATRI’s analysis, which utilized data from 2024, found that traffic conditions continue to deteriorate from recent years, partly due to work zones resulting from increased infrastructure investment. Average rush hour truck speeds were 34.2 miles per hour (MPH), down 3% from the previous year. Among the top 10 locations, average rush hour truck speeds were 29.7 MPH.
In addition to squandering time and money, these delays also waste fuel—with trucks burning an estimated 6.4 billion gallons of diesel fuel and producing more than 65 million metric tons of additional carbon emissions while stuck in traffic jams, according to ATRI.
On a positive note, ATRI said its analysis helps quantify the value of infrastructure investment, pointing to improvements at Chicago’s Jane Byrne Interchange as an example. Once the number one truck bottleneck in the country for three years in a row, the recently constructed interchange saw rush hour truck speeds improve by nearly 25% after construction was completed, according to the report.
“Delays inflicted on truckers by congestion are the equivalent of 436,000 drivers sitting idle for an entire year,” ATRI President and COO Rebecca Brewster said in a statement announcing the findings. “These metrics are getting worse, but the good news is that states do not need to accept the status quo. Illinois was once home to the top bottleneck in the country, but following a sustained effort to expand capacity, the Jane Byrne Interchange in Chicago no longer ranks in the top 10. This data gives policymakers a road map to reduce chokepoints, lower emissions, and drive economic growth.”
Know someone who is making a difference in the world of logistics? Then consider nominating that person as one of DC Velocity’s “Rainmakers”—professionals from all facets of the business whose achievements set them apart from the crowd. In the past, they have included practitioners, consultants, academics, vendors, and even military commanders.
To identify these achievers, DC Velocity’s editorial directors work with members of the magazine’s Editorial Advisory Board. The nomination process begins in January and concludes in April with a vote to determine which nominees will be invited to become Rainmakers.