As technology, automation, and robotics continue to reshape entire industries, the digital supply chain is emerging as a powerful force for driving efficiency, visibility, and resilience in an uncertain world. Powered by advanced technologies that support real-time visibility into inventory levels, transportation routes and customer demand, businesses can more effectively anticipate disruptions, make data-driven decisions and optimize their existing resources.
With the labor shortage still in full force on the warehousing, logistics and transportation front, companies must also equip employees with the right skills and tools—all while fostering a culture of innovation and empowering individuals to drive change. That means training on emerging technologies like artificial intelligence (AI), leveraging user-friendly software that streamlines workflows and taking other steps to become the “employer of choice” in this labor-constrained environment.
For the 2024 Supply Chain Outlook Virtual Summit, the editors of Logistics Management and Supply Chain Management Review present sessions that offer modern strategies and automated solutions. The sessions encapsulate the most practical tips on evaluating, implementing and leveraging tools to streamline operations, future-proof operations and prepare for what’s coming next. Here’s a synopsis of each presentation along with its core messages and valuable takeaways.
Keynote
Transforming supply chain operations with AI
In this year’s keynote address, Nathanael Powrie, a senior director at SGS Maine Pointe, takes a deep dive into how AI is revolutionizing supply chain operations. He also discusses practical tips for logistics and supply chain professionals who want to focus their AI efforts in a way that generates measurable business value.
Powrie kicks off the Virtual Summit by introducing a recent National Bureau of Economic Research report that states that 28% of U.S. workers are using generative AI (GenAI) on the job, with 24% of them using GenAI at least once a week. Within the last two years, GenAI has achieved a nearly 40% adoption rate.
“A technology that barely existed two years ago is now a staple in nearly one-third of our workplaces,” says Powrie. “This isn’t just a tech trend; it’s a seismic shift that’s affecting everyone.”
Powrie explains that GenAI is a general-purpose technology in the sense that it can be used in a wide range of occupations and tasks, both at work and at home. As we look ahead to the future of supply chain management, Powrie says it’s impossible to ignore the growing role of AI and GenAI and their increasing computational demands.
“Operations visibility is everything,” Powrie continues. “AI can offer real-time insights across your operational processes and it also enhances quality.
For example, machine learning can continuously monitor production metrics,identifying issues before they become costly errors.”
Session 1: Transportation
33rd Annual Study of Logistics and Transportation Trends: Putting the pieces together
In an increasingly complex landscape, today’s logistics and transportation professionals have to be able to balance challenging market conditions, evolving regulations and fierce competition for talent—all while embracing emerging technologies. Missing even one piece of the puzzle can lead to inefficiencies, operational disruptions and missed opportunities.
In this session, a research panel made up of representatives from Mississippi State University, Georgia College & State University, the University of Central Arkansas and SMC3 participate in an informative, thoughtful discussion about the 33rd Annual Study of Logistics and Transportation Trends.
This year’s study explores critical areas like transportation spending, competitive strategy and performance management. Christopher Boone of Mississippi State University opens up the discussion by talking about a common focus on employee productivity among companies right now.
Georgia College and State University’s Karl Manrodt says companies are viewing automation not as something that will replace human workers, but as a tool that helps employees focus on customer service.
The group also discusses the dearth of supply chain talent in a marketplace that sorely needs such professionals—both experienced and green. “I frequently joke that if I had 10,000 students, I would have the same number of employers coming to me trying to find more,” says Douglas Voss of the University of Central Arkansas. “The days of finding a super-talented candidate off the street that happens to walk by your office are gone. We need to do a better job as an industry of selling what we have to offer.”
Session 2: Software
Mastering Complexity: TMS is mission critical
As companies grow, expand into new regions or handle more transportation modes, their supply chain complexities can escalate pretty quickly. Add the fluctuating fuel rates, capacity constraints, labor shortages and rising customer expectations to the equation and the pressure on logistics teams just continues to mount.
Companies are increasingly turning to technology to help them work through these roadblocks, and transportation management systems (TMS) are one popular tool for streamlining and driving efficiencies out of transportation networks.
In this session, Howard Turner, director of supply chain execution systems at St. Onge Co., discusses some of the clear signs that it’s time for a TMS: Are you struggling to keep up with transportation spend, and especially on a monthly basis? Do you need more robust audit and payment capabilities? Can you track carrier performance and actual pickup times and drop off times?
The answers to these questions can help companies make the business case for a TMS investment. Turner also discusses supply chain control towers, or those centralized hubs that provide real-time visibility and control over the entire supply chain, enabling proactive decision-making and rapid response to disruptions.
“Customer demands, visibility of shipments and delivery times—these are all the areas where TMS can provide the data and the ability to streamline these processes,” says Turner, who sees software control towers as one way to “bridge systems” and get all solutions talking to and sharing data with one another.
This, in turn, helps to improve overall supply chain visibility. “Another benefit of this control tower software is that you can configure views and the level of detail needed for each particular stakeholder,” says Turner, “and all using the same sheet of music.”
Session 3: Warehouse/DC Automation & Operations
2024 Warehouse/DC Operations Study: Investment set to soar
Each year, Peerless Research Group conducts a comprehensive survey of warehouse operational trends—from site expansion and square footage to spending on automation and material handling equipment. This year’s survey reveals that 84% of respondents are planning expansions (up 1% from 2023) and are increasing capital budgets for warehouse automation and materials handling.
For the third consecutive year, on-time shipping has emerged as a key metric, while SKU counts have slimmed. These are some of the findings that Norm Saenz, partner, managing director at St. Onge Co., discusses in his Virtual Summit session. He says most warehouse operations are dealing with case handling on the inbound versus single SKU pallets, which only make up about 23% of inbound freight right now.
The shift to more case handling has created new challenges for warehouses, which need more physical space and expandable conveyors to sort goods out on the dock. On the outbound side, Saenz says that the e-commerce boom has driven a need for more case handling, picking and shipping. He goes on to discuss how labor constraints are impacting fulfillment centers, citing a typical employee turnover rate of about 30% or more.
“These numbers are concerning because it can cost $4,000 to $5,000 to bring on one new employee,” says Saenz, who advises companies to carefully assess and track their turnover rates—something not everyone is doing, according to the survey.
When it comes to software, Saenz says warehouse execution systems (WES) and warehouse control systems (WCS) vendors continue to blur the lines between themselves and traditional warehouse management systems (WMS). This is a positive for companies that want to use their WES for activities like inventory management and directed picking.
Session 4: Third-party Logistics (3PL) Session
Redefining the Shipper/3PL Partnership: A refreshed logistics operating model
Shippers and third-party logistics (3PL) providers have always worked together, but a pair of Ernst & Young LLP managing directors have developed a more seamless, connected model to improve the win-win value of these relationships, all while maintaining a customer-centric focus.
In this session, EY’s Bob Pitts and Mike Reiss discuss a logistics operating model (LOM) that’s strategically designed with the shipper-3PL partnership in mind. They say the LOM is the framework by which the logistics functions manage route-to-market strategies that are inherited from and connected to the overall business strategy.
Historically, they say the relationship between suppliers and 3PLs has been pretty straightforward and profit-driven: shippers needing to get the products from point A to point B to the market, and having 3PLs facilitate the movement for a basic fee. “Now, as we’re starting to navigate this ever-changing logistics landscape, this type of transactional relationship between the shipper and the 3PL just will no longer suffice,” Reiss explains.
“We really need to evolve toward a more strategic relationship model between the shipper and a 3PL,” he continues. “This is being driven by the need for shippers to do more with less, deliver distinctive capabilities quickly and manage constant change.”
Reiss and Pitts outline the LOM, discussing its strategic framework and shared value proposition for all involved parties. This differs from the traditional shipper-3PL relationship, which is largely focused on the latter providing services to the former in exchange for compensation.
With the LOM, benefits are mutually shared between the two. “If a shipper is going to grow a strategic relationship with its 3PL, the shipper has to make sure it has the 3PL’s growth in mind,” says Pitts. “As the 3PL grows, the shipper is going to be more successful and their [combined] power can be amplified out in the market.”
Session 5: Robotics/Automation Session
Robotics/Automation: Making the automation decision
Many companies are rethinking their approach to warehouse and DC technology. Logistics and supply chain managers are being confronted with a critical question: Why don’t we have robots? In this
session, Tom Bonkenburg, director of European Operations at St. Onge Co., helps attendees address this decision and decide whether now is the right time to automate (or not).
Bonkenburg kicks off his session with some eye-opening statistics: 80% of all warehouses are still manual; 15% are mechanized with conveyors and sorters; and just 5% are fully equipped with technology, systems and robots. “So, if you’re in that 80% manual category don’t feel bad,” he says, “because you’re actually in the majority.”
To companies that are just starting their automation journeys, Bonkenburg says to start with automation design and how it will fit into your physical space and workflows. Be sure to factor future growth and scale into the equation.
“When you extrapolate the future, make sure you’re looking at how your SKUs are going to change,” Bonkenburg says. “How is your business going to change and will your automation be able to handle that change or will you be accidentally handcuffing yourself?”
