The fragility of global supply chains has been starkly exposed by recent disruptions. Issues like information asymmetry, inefficient coordination, and inadequate crisis response capabilities have created complex bottlenecks that hinder smooth goods movement. In response, the White House recently launched the Freight Logistics Optimization Works (FLOW) program, aiming to build digital infrastructure that connects supply chain segments and enhances information sharing to reduce congestion, accelerate freight movement, and lower costs. But can this ambitious initiative truly address systemic supply chain challenges?
FLOW Initiative: The White House's New Approach to Supply Chain Challenges
The White House describes FLOW as an information-sharing initiative piloting critical exchanges of freight data across supply chain segments. The program brings together 18 stakeholders from various sectors, including private companies, warehousing firms, logistics providers, and ports. Participants include the Ports of Long Beach and Los Angeles, Georgia Ports Authority, CMA CGM, MSC, Fenix Marine Terminal, Global Container Terminals, Albertsons, Gemini Shippers, Land O'Lakes, Target, True Value, DCLI, FlexiVan, FedEx, Prologis, UPS, and C.H. Robinson.
Administration officials state these stakeholders will collaborate with the government to develop a proof-of-concept information exchange platform to alleviate supply chain congestion, speed up freight movement, and ultimately reduce costs for American consumers. The Department of Transportation (DOT) will lead this effort as an honest broker, convening supply chain participants to solve problems and overcome coordination challenges. The initial goal is completing the freight information exchange proof-of-concept by summer's end.
The FLOW initiative emerges from growing recognition of the need for improved information exchange following recent supply chain disruptions. Stakeholders require reliable, predictable, and accurate data about goods movement. The White House contends that current deficiencies in digital infrastructure and transparency leave supply chains vulnerable to shocks.
The administration notes that freight movement chains are almost entirely privately operated, involving shipping companies, ports, terminal operators, trucking firms, railroads, warehouses, and retailers. While these diverse participants have made significant progress digitizing internal operations, they don't consistently exchange information with each other. This lack of data sharing creates delays as goods move between supply chain segments, driving up costs and increasing freight system fragility.
FLOW's Objectives and Principles
The White House has established these FLOW program goals:
• Align early return dates among partners
• More accurately measure chassis availability and understand total dwell times across supply chains
The pilot operates on principles of voluntary, secure national freight information exchange where participants benefit from shared data, sustained by operational improvements.
Mixed Industry Reactions
Industry responses to FLOW have varied for different reasons.
Ben Gordon, managing partner at Cambridge Capital and BGSA Holdings, called FLOW "an interesting and good idea in principle" but questioned its practical implementation. "Why would the White House launch a supply chain data initiative without including any supply chain software companies? Who's organizing this? Where are the actual industry leaders in supply chain data?" Gordon asked.
Dave Ross, executive vice president at Roadrunner Freight, expressed similar skepticism, suggesting it reveals limited government understanding of supply chains. "I don't think it will gain much traction," Ross said. "Domestic freight is severely underrepresented in the initial 18 partners. Trucking accounts for over 80% of U.S. freight spending, but there isn't a single truckload carrier on the list. Where's Knight-Swift? Schneider? Werner? The real issue has always been physical infrastructure, not digital. We've underinvested in strategic transportation infrastructure for nearly 40 years. You can't email pallets to someone—we should focus on actual freight capacity."
Larry Gross, president of Gross Transportation Consulting, praised the government's recognition of problems but noted limitations. "Supply chain difficulties are indeed exacerbated by poor information flow between parties, which amplifies the bullwhip effect," he said. "However, information flow isn't the only issue—a core problem involves supply chain segments acting in self-interest at others' expense, particularly downstream participants. Better information only helps when participants are prepared to act. That said, I notice the absence of drayage companies and railroads. Both need involvement for this to succeed."
Evan Armstrong, president of Armstrong & Associates, viewed DOT's efforts positively. "Anything supporting better supply chain visibility among shippers, ports, and logistics providers is a plus," he said. "Perhaps collaborative predictive models could identify potential disruptions. They've recruited a good starter set of companies."
Eric Oak, research director at Panjiva, noted typical data limitations for evaluating such efforts but acknowledged the initiative's continuity with government congestion-solving efforts. "Efficiencies may emerge from shared data and coordinated activities, hopefully helping participants streamline operations and clear cargo faster."
Challenges and Outlook
While FLOW represents a significant step in U.S. supply chain digital transformation, substantial challenges remain:
Participation Breadth: Despite involving 18 major companies, FLOW's representation gaps—particularly in domestic freight and rail—may limit data comprehensiveness.
Data Security: Information sharing raises privacy and security concerns. Establishing trustworthy exchange platforms will be critical.
Interest Alignment: Supply chain participants often have conflicting priorities. Building cooperative trust relationships presents ongoing challenges requiring active government mediation.
Technical Standards: Differing systems across supply chain segments demand interoperability solutions. Common standards and open interfaces will enable smoother information exchange.
Despite these hurdles, FLOW marks an important U.S. move toward supply chain digital transformation. Through enhanced information sharing and collaboration, the initiative could improve supply chain efficiency and resilience, supporting long-term economic growth. Its development may offer valuable lessons for global supply chain digitalization efforts.
Information Sharing as Key: FLOW's core value lies in increasing supply chain transparency and predictability. Shared data enables better decision-making about cargo status, location, and ETAs, reducing delays and waste.
Technology as Foundation: Cloud computing, big data, IoT, and AI provide essential tools for implementing FLOW's digital transformation goals through centralized data management, operational analysis, real-time tracking, and predictive capabilities.
Collaboration as Requirement: FLOW's success depends on multi-stakeholder cooperation—government coordination, corporate participation, and industry standards development. Only collective action can achieve meaningful digital transformation.