ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
The year 2024 was by all accounts one of struggle and perseverance for supply chain practitioners. No one was immune, from shippers and their third-party service providers, to the truckers providing freight capacity, brokers managing transportation, and technology providers seeking to deliver the next big tech innovation.
At this time last year, many in the industry thought the back half of 2024 would provide at least a ray of hope for a rebound. However, 2024 came to a close with many of the same pressures and challenges that marked its beginning.
Nevertheless, in a series of interviews with shippers, third-party logistics companies (3PLs), brokers, truck lines, industry associations, and analysts, there was a sense of cautious optimism about this upcoming year. That optimism is, however, tempered by a tough market as well as macroeconomic and political realities. Challenges remain—among them persistent excess trucking capacity, particularly on the truckload side; businesses delaying decisions on investment and expansion; an industrial economy that’s stuck in neutral; shifting supply chain nodes and flows; and shippers focused intensely on cost and looking to winnow down their stable of service providers.
Surviving a flat freight market
Jeff Jackson, president of the 3PL Penske Logistics, has seen many boom-and-bust cycles in his 30-plus years in the supply chain business. But he’s never seen a market like today’s. “Some call it a freight recession,” he says, “but [it’s] not really. Freight [volumes] have not retreated. It’s a capacity issue. There are still too many trucks out there chasing freight.”
He points out as well that persistent excess capacity has kept pricing depressed to the point that costs still exceed rates in the spot and contract markets. “That can only last for so long,” he says. “I’m not sure how much more [truckers] can take.”
One segment that remains solid, Jackson says, is the dedicated market, where a shipper contracts with a 3PL for a full-service dedicated trucking solution, including trucks, drivers, technology, and management and operating personnel.
Dedicated solutions, along with private fleets, are an attempt by shippers “to get more control over their supply chain” at a predicable cost and with consistently reliable service and capacity, Jackson notes. He is seeing a migration to dedicated, versus for-hire, that he believes will accelerate as a result of “nuclear verdicts” in trucking accident liability cases and the insurance crisis it has fueled.
“These nuclear verdicts are unsustainable,” he says. “You can’t listen to a big trucking company’s quarterly earnings call without hearing a reference to insurance premiums or claims being an issue. It’s a pretty steady conversation.”
Gary Petty, chief executive officer of the National Private Truck Council (NPTC), has a similar viewpoint on the rampant escalation of truck liability claims and awards. “There is no magic bullet to prevent getting sued at a nuclear-verdict level or beyond because the public views a truck accident as a driver-at-fault incident,” he says. The reality, according to Petty, is often the opposite. “The four-wheeled vehicles on the road are the ones causing the majority of accidents,” he says.
One area the NPTC and its members have focused on to protect themselves has been truck safety technology, particularly in-cab two-way cameras. “Those have been transformative; we have almost 80% penetration on the private fleet side,” Petty says. The cameras provide evidence of both fault and innocence in an accident, he says. Even more importantly, they provide a critical training and education tool to help drivers eliminate bad habits, improve skills, and increase safety.
Like dedicated services, private fleets have seen significant growth, and Petty expects it to continue. Private fleets today are a $300 billion business. (By definition, a private fleet is a trucking operation owned by a company that primarily focuses on manufacturing or distributing its own products, not on the trucking service itself.)
According to NPTC’s most recent annual market survey, the percentage of outbound shipments that moved with private fleets hit 75% in 2023, the highest level in the survey’s history. Overall, private fleets manage about 40% of the freight moving in the U.S. Some 942,000 companies now operate private fleets (which account for 47% of all truck fleets). Growth, as measured by the number of private fleet shipments, has averaged a little over 8% annually for the past five years.
Tough customers
As for the less-than-truckload (LTL) segment, the rise in nearshoring and reshoring is providing a welcome bump. “I definitely think we will continue to see growth [along the U.S.–Mexico border] in 2025,” says Chris Kelley, senior vice president of operations for trucker Old Dominion Freight Line (ODFL). “During COVID, shippers found out that having products on the water for weeks or months at a time puts their business at risk. So shortening the supply chain became an imperative.”
Kelley additionally expects to see shippers become increasingly demanding—particularly about timely, accurate information and precision service—in 2025. “The rigors of delivery to retailers have become far more stringent,” he notes. “They want freight delivered within specific windows and times. Specific purchase orders delivered on a specific day. Certain freight arriving in certain trailers.”
For these customers, delivering early is just as bad as delivering late, sometimes worse, he says. And delivering late is just not an option. “They can’t afford to have their product languishing somewhere, missing a sales window. It has to be at the warehouse or on the shelf on time,” he notes.
Where’s the warehouse?
Over on the warehousing side, Melinda McLaughlin, global head of research at Prologis, one of the world’s largest operators of commercial warehousing space, believes the base case for recovery hinges on the prospect of an economic soft landing.
“Any volatility that interrupts what the Fed [Federal Reserve Board] is trying to engineer would change that,” she notes. “But given a soft landing, we see a gradual recovery in 2025.”
McLaughlin believes that a reduction in volatility and uncertainty could help “unlock” investment dollars in the warehousing market. She says that the uncertainty and volatility seen in 2023 and 2024 caused a “slowdown” in decision-making for things like expansion plans and fleet and facility investments. Volatility from geopolitics, natural disasters, and labor disruptions “points to a more disruptive future for supply chains,” she says.
Given market conditions, Prologis customers remain tightly focused on cost, especially as energy, wages, and construction costs continue to rise. Companies are also increasingly pressured to incorporate sustainability measures.
Consumers’ habits will play a large, additional role on distribution operations, as companies will need to adjust to the multiple ways they choose to shop and receive goods, McLaughlin adds. “We will have productivity enhancements, but at the same time, service levels really need to rise because that has defined the industry long term,” she says.
As a result, McLaughlin sees a trend toward staging goods—and the warehouses that handle storage and fulfillment—closer to end-consumers. This trend has also increased the importance of last-mile logistics. “It is about bringing scale as close to the end-consumer as possible,” she notes. “There are tremendous benefits and cost savings, as well as carbon emissions savings. You have fewer miles traveled.”
Overall, McLaughlin is hopeful the industry will see “clearer skies” in 2025. “Some companies are still conservative and remain pretty defensive in how they are running their supply chains,” she says. “They are waiting for more clarity and hope to see that in 2025.”
Key focus areas: cost, tech, and labor
Managing costs is also top of mind for 3PL customers. Steve Sensing, president of supply chain and dedicated transportation solutions for Ryder, says his customers are homed in on continuous improvement and are looking to Ryder to help them drive out costs.
“Their volumes are down, and they have challenges in key markets,” he says. “So it’s really about helping them manage costs in a down market. And they are equally as eager to make sure we are prepared to support them when the volume returns.”
Kenneth Clark Co., a 3PL that specializes in heavyweight, oversized, and project cargo logistics, is hearing similar demands from its customers, which are mainly makers of heavy machinery for the construction industry. President Ken Clark, whose grandfather founded the family-owned company in 1960, says his customers are facing an inventory glut at dealers.
As a result, he’s detected a shift in how shippers are planning for and managing their freight needs. “Whether it is using sophisticated technology or just good tactical execution to [boost] efficiency, shippers want to drive down costs. They are looking for how I as a broker or 3PL can make it as cost-effective as possible and still manage my freight with good service,” he notes.
Likewise, Sensing is also seeing an increasing demand from customers to be adept at the latest technology. “There is always going to be new technology, so we have to make sure we innovate and stay on top of it. Automation is becoming a bigger part of what we do, especially in the omnichannel area,” Sensing notes.
Part of this focus on technology is driven by the tight labor market. “Customers are concerned about getting people,” he says. “So they look to us for both technology and automation solutions as well as innovative hiring and retention programs.”
An eye on fraud
Another issue demanding attention in the brokerage space, says Clark, is fraud, such as double-brokering, as well as cargo theft and other nefarious practices. “We have to prevent unlicensed brokers, working from places not friendly to the U.S., from operating in the U.S.” he stresses. “We have been fighting this for years. It’s a huge problem: brokerages in Eastern Europe, Asia, and South America directing the movement of goods in the U.S. Some are commodities but others are sensitive goods we probably don’t want our adversaries to know about.”
Clark, along with Chris Burroughs, the president and CEO of the Transportation Intermediaries Association, is working with association members, government agencies, and other parties to shore up the licensing process, establish tougher requirements, and bring more transparency to who is directing freight. “It’s an existential threat to the industry, and shippers are looking to the brokerage community to come together and solve the problem,” says Burroughs.
Make it simple
Outside of solving the fraud issue, deploying more and better technology, and lowering logistics costs, shippers are looking to partner with logistics providers that are agile and efficient, offer consistent service, and can quickly solve problems, notes Dylan Rexing, president of 3PL PFL Logistics. They also want to deal with fewer suppliers. Rexing cites one shipper who last year went from a stable of 500 carriers and multiple brokers down to 250. “And they are planning to reduce that even further,” he says.
“From the customer’s perspective, they are always looking to us for ways we can make their lives easier, whether it’s integrating new tools, optimizing their freight, onboarding carriers, [providing] real-time visibility, or simply doing the blocking and tackling of the business flawlessly,” he says.
“Trucking is not all that sexy, in my opinion, but it is perhaps the most critical piece of the supply chain, and we want our customers to have confidence their goods are moving safely and efficiently, and are showing up when and where they expect them,” he concludes.
Editor's Note: This article originally appeared in the December 2024 issue of DC Velocity.
Hackers are beginning to extend their computer attacks to ever-larger organizations in their hunt for greater criminal profits, which could drive an anticipated increase in credit risk and push insurers to charge more for their policies, according to the “2025 Cyber Outlook” from Moody’s Ratings.
In Moody’s forecast, cyber risk will intensify in 2025 as attackers switch tactics in response to better corporate cyber defenses and as advances in artificial intelligence increase the volume and sophistication of their strikes. Meanwhile, the incoming Trump administration will likely scale back cyber defense regulations in the US, while a new UN treaty on cyber crime will strengthen the global fight against this threat, the report said.
“Ransomware perpetrators are now targeting larger organizations in search of higher ransom demands, leading to greater credit impact. This shift is likely to increase the cyber risk for entities rated by Moody's and could lead to increased loss ratios for cyber insurers, impacting premium rates in the U.S.," Leroy Terrelonge, Moody’s Ratings Vice President and author of the Outlook report, said in a statement.
The warning comes just weeks after global supply chain software vendor Blue Yonder was hit by a ransomware attack that snarled many of its customers’ retail, labor, and transportation platforms in the midst of the winter holiday shopping surge.
That successful attack shows that while larger businesses tend to have more advanced cybersecurity defenses, their risk is not necessarily diminished. According to Moody’s, their networks are generally more complex, making it easier to overlook vulnerabilities, and when they have grown in size over time, they are more likely to have older systems that are more difficult to secure.
Another factor fueling the problem is Generative AI, which will will enable attackers to craft personalized, compelling messages that mimic legitimate communications from trusted entities, thus turbocharging the phishing attacks which aim to entice a user into clicking a malicious link.
Complex supply chains further compound the problem, since cybercriminals often find the easiest attack path is through third-party software suppliers that are typically not as well protected as large companies. And by compromising one supplier, they can attack a wide swath of that supplier's customers.
In the face of that rising threat, a new Republican administration will likely soften U.S. cyber regulations, Moody’s said. The administration will likely roll back cybersecurity mandates and potentially curtail the activities of the US Cybersecurity and Infrastructure Security Agency (CISA), thus heightening the risk of cyberattack.
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The new "Amazon Nova" AI tools can use basic prompts--like "a dinosaur sitting in a teacup"--to create outputs in text, images, or video.
Benefits for Amazon's customers--who include marketplace retailers and logistics services customers, as well as companies who use its Amazon Web Services (AWS) platform and the e-commerce shoppers who buy goods on the website--will include generative AI (Gen AI) solutions that offer real-world value, the company said.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."