Driven by technological innovation, automation, and robotics, traditional industries are undergoing profound transformations. Digital supply chains now deliver unprecedented efficiency, transparency, and resilience against uncertainty. As businesses navigate global economic complexities, advanced technologies provide real-time insights into inventory levels, transportation routes, and customer demands—enabling better disruption forecasting, data-driven decisions, and optimal resource allocation.
Tackling Labor Shortages in Warehousing and Logistics
The warehousing, logistics, and transportation sectors face persistent labor shortages. To address this challenge, companies must implement proactive strategies:
- Upskilling and Tool Enablement: Train employees in emerging technologies like AI while deploying user-friendly software to streamline workflows.
- Employer Brand Enhancement: Foster innovation cultures that empower employees, positioning organizations as employers of choice.
2024 Supply Chain Outlook Virtual Summit: Key Insights
The editorial teams of Logistics Management and Supply Chain Management Review hosted the "2024 Supply Chain Outlook Virtual Summit," delivering modern strategies and automation solutions. The event focused on operational streamlining, future-proofing, and preparedness for emerging challenges. Below are session highlights.
Keynote: AI's Transformative Role in Supply Chain Operations
Nathanael Powrie, Senior Director at SGS Maine Pointe, explored how AI revolutionizes supply chains. Citing National Bureau of Economic Research data, he revealed that 28% of U.S. workers now use generative AI (GenAI), with 24% employing it weekly. Adoption has neared 40% over two years.
"This technology barely existed two years ago—now it's essential for nearly one-third of workplaces," Powrie emphasized. "This isn't just a trend; it's a paradigm shift affecting everyone."
He explained GenAI's versatility across professions and tasks, noting its growing importance in supply chain management. "Operational visibility is critical," Powrie continued. "AI delivers real-time insights across processes while enhancing quality. Machine learning, for instance, can monitor production metrics to preempt costly errors."
Session 1: Transportation
33rd Annual Study on Logistics and Transportation Trends: Connecting the Dots
Amid market volatility, regulatory changes, and labor competition, professionals must balance operational demands with technology adoption. A research panel from Mississippi State University, Georgia College & State University, and Arkansas Central University discussed key findings:
- Companies view automation as a tool to augment—not replace—human workers.
- The industry faces acute talent shortages at all experience levels.
"If I had 10,000 students, I'd have 10,000 employers seeking them," joked Douglas Voss of Arkansas Central University. "The days of finding superstar candidates easily are over. We must better communicate our industry's value proposition."
Session 2: Software
Navigating Complexity: The Critical Role of TMS
As companies expand geographically and handle multimodal shipments, supply chain complexity escalates. Fuel price volatility, capacity constraints, labor shortages, and rising customer expectations compound these challenges. Many now turn to Transportation Management Systems (TMS) for solutions.
Howard Turner of St. Onge Co. outlined TMS adoption indicators: difficulty tracking transportation spend, inadequate audit capabilities, or inability to monitor carrier performance. He also highlighted supply chain control towers—centralized hubs enabling real-time visibility and proactive disruption response.
"TMS delivers data on customer demands, freight visibility, and delivery times," Turner noted. "Control towers connect systems, allowing solutions to communicate—all while customizing views for different stakeholders."
Session 3: Warehouse Automation & Operations
2024 Warehouse/DC Operations Study: Investment Momentum Builds
Peerless Research Group's annual survey revealed 84% of respondents plan facility expansions, with increased automation budgets. Norm Saenz of St. Onge Co. discussed findings:
- On-time shipments remain the top metric for three consecutive years.
- E-commerce growth drives box-handling demand versus palletized SKUs.
- Warehouse employee turnover averages 30%, with replacement costs reaching $5,000 per hire.
Saenz noted the blurring lines between Warehouse Execution Systems (WES), Warehouse Control Systems (WCS), and traditional WMS solutions—a positive development for inventory management and directed picking.
Session 4: 3PL Partnerships
Redefining Shipper/3PL Relationships: A Modern Logistics Operating Model
Bob Pitts and Mike Reiss of Ernst & Young LLP proposed a Logistics Operating Model (LOM) to transform transactional shipper-3PL relationships into strategic partnerships. Traditional fee-for-service arrangements no longer suffice in today's dynamic environment.
"Shippers must ensure their 3PLs' growth aligns with their own," Pitts explained. "As 3PLs succeed, shippers amplify their market presence—this is shared-value creation."
Session 5: Robotics & Automation
Making Automation Decisions: Is Now the Right Time?
Tom Bonkenburg of St. Onge Co. addressed the automation dilemma with startling statistics: 80% of warehouses remain manual; 15% use conveyors/sorters; only 5% deploy advanced robotics.
"If you're among the 80%, don't despair—you're the majority," Bonkenburg reassured. "When automating, consider future scalability. Will your system accommodate SKU and business model evolution, or will it constrain growth?"