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The Workforce Strategies Supply Chain Leaders Will Need to Employ for the Next 4 Years

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The Workforce Strategies Supply Chain Leaders Will Need To Employ For The Next 4 Years

Foster Finley, coauthor of this article

The upcoming Trump administration has signaled a number of trade and immigration initiatives that will significantly impact supply chain strategies for the next four years and beyond. The potential for business disruption and impact on the bottom line of many companies will cause the C-suites to turn to supply chain leaders to mitigate higher costs and labor shortages. This post focuses on what to do in what could be a very challenging labor market.

To understand what is happening and its impact on supply chain strategies, let’s look at what has been announced so far that could impact the labor market. It has been proposed that 2 to 11 million illegal aliens will be deported.

Before considering the impact of any efforts to remove illegal aliens let’s review what has been happening to the U.S. workforce for decades. The use of illegal aliens in the U.S. workforce has been well underway for over 50 years and, in many cases, embedded in the economic models of many industries such as construction, agriculture, domestic and janitorial services, landscaping, and many forms of manufacturing.

There are fewer U.S.-born people entering the job market because the birth rate in the U.S. has been declining for decades, and the birth replacement rate has not been met for 50 years. Further, the U.S. has been operating at almost record low levels of unemployment (3.7% to 4.1%) for 3 years and workforce participation has stabilized. This has consequences. From the middle of 2020 until today, supply chain organizations have been under intense pressure to find and retain quality resources – labor and knowledge workers.

Taking resources out of the U.S. labor market through mass deportation will put extreme cost and availability pressure on the overall labor market. As was seen during the pandemic, when there was also an extreme labor shortage, workers crossed industries to make more money. This is now a learned lesson for many workers and there is no reason expect that behavior to change as those industries most impacted by deportation or the threat of it, scramble to find workers to fill open positions.

The timing and level of deportation is uncertain, but when it does happen there will be resource scarcity shock waves rolling across industries and geographies. An obvious impact will be on the higher cost of those that are available. However, there is likely to be revenue impacts for those companies that cannot make up for the labor shortfall because they cannot get products to the market on time or at all.

The challenges retaining and recruiting supply chain talent have been underway for a number of years will increase. To mitigate the impact of impending tighter labor constraints, supply chain leaders will need to focus more of their efforts on becoming the employer of choice to retain and recruit resources while reducing their dependence upon labor in general.

The first action supply chain leaders should be on policies and practices that strengthen workforce retention. Replacement is going to get much harder because of an increasingly reduced pool of available resources and what we continue to hear from supply chain leaders, lower quality resources in the market.

The second action is to reduce the dependence upon supply chain labor and seasonal hiring. Supply chains are labor intensive, and the need for labor is not going away, but the impact of shortages can be mitigated through hard and soft automation. Repetitive tasks can be moved from humans to machines and robots.

The productivity of existing labor resources can be dramatically improved, reducing the number of manufacturing and warehouse workers and drivers needed or minimizing the need to hire as many seasonal workers as in the past. However, supply chain leaders need to act quickly here as we hear that lead times for automation equipment and resources to implement them has become extended.

The last action is to improve hiring practices and focus on non-cash benefits that attract new resources. Compensation will not be a differentiator unless your organization is willing to go well beyond industry norms for pay. At best, it will be temporal as others recognize your efforts. There are other ways such as flexible working hours, skills training, etc. that potential workers value highly and differentiate during the hiring process.

Two of the bigger wildcards in the deportation discussion are what industries and geographies get impacted first and the most. One way to look at this is to consider the states closest to the Southern U.S. border and their political leaning. For example, Texas and Arizona are more likely to see deportation move quickly than California. The same thoughts could be applied further inland. This is likely to affect smaller and regional rather than larger businesses as the larger ones have traditionally stricter hiring practices and greater regulations.

Supply chain leaders should also evaluate suppliers based on border or adjacent states to determine the vulnerability to a resource shortage. It’s not just whether they were using illegal aliens, but rather, are they at risk of losing labor to others willing to pay more to make up for their own shortfalls?

The U.S. labor market is extremely complicated and entwined and unwinding the illegal alien situation that has been evolving over the last 50 years. Because “illegals” are deeply embedded in many industries, there will be unintended consequences to the overall workforce and supply chains in particular.

Protecting the supply chain workforce will be critical for the next four years as they are becoming more valuable given an impending reduction in available workers and proposed tariffs dissenting offshoring. Supply chain leaders need to be able to communicate to the C-suite that there is significant potential for higher labor costs but, equally important, fewer workers, which could impact top-line performance.

Investment in solutions that improve worker productivity or eliminate traditional labor-based operations must be prioritized to minimize the upcoming impact on resources.

Chris Jones is a supply chain industry veteran with over 40 years of a broad range of hands-on leadership experience. He was Executive Vice President at Descartes Systems for 19 years leading Marketing, Services, Product Management and Development at various times during his tenure. He helps supply chain executives understand how to transform their operation’s performance and expand its impact on the business.

Foster Finley has over 37 years of industry and consulting experience. He was a Managing Director at AlixPartners, the global business advisory firm, and co-lead the firm’s global Operations Practice. He has a long track record of high-impact, complex project planning and execution for operations-intensive clients across many industries.

The post The Workforce Strategies Supply Chain Leaders Will Need to Employ for the Next 4 Years appeared first on Logistics Viewpoints.

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Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution

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Walmart Ai Pricing Patents Signal Shift Toward Real Time Retail Execution

Walmart’s new patents and digital shelf rollout point to a more tightly integrated model linking demand forecasting, pricing, and store-level execution.

Walmart has secured two patents related to automated pricing and demand forecasting, drawing attention to how large retailers are evolving their pricing and execution capabilities.

One patent, System and Method for Dynamically Updating Prices on an E-Commerce Platform, covers a system that can dynamically update online prices based on changing market conditions. A second, Walmart Pricing and Demand Forecasting Patent Classification, relates to demand forecasting technology designed to estimate what customers will buy and recommend pricing accordingly. At the same time, Walmart is expanding digital shelf labels across its U.S. stores, replacing paper labels with centrally managed electronic displays.

Individually, none of these elements are new. Retailers have long used forecasting models, pricing tools, and store execution processes. What is notable is the combination.

Walmart now has three capabilities aligned:

Demand forecasting tied to predictive models

Price recommendation based on that demand

Store-level infrastructure capable of rapid execution

That combination reduces the operational friction historically associated with pricing in physical retail.

Pricing Moves Closer to Execution

Traditional store pricing changes required coordination across multiple steps: analysis, approval, printing, distribution, and manual shelf updates. That process introduced delay and inconsistency.

Digital shelf labels materially change that constraint. Prices can be updated centrally and executed across stores with significantly less manual intervention.

This does not change the underlying logic of pricing decisions. Retailers have always adjusted prices based on demand, competition, and margin targets. What changes is the speed and consistency of execution.

As a result, pricing moves closer to real-time operational control.

Implications for Supply Chain Operations

Pricing is not an isolated commercial function. It directly influences demand patterns, inventory flow, replenishment timing, and markdown activity.

When pricing becomes faster and more responsive, those linkages tighten.

Three implications are clear:

1. Increased Execution Speed
Retailers can align pricing decisions more quickly with current demand conditions, reducing lag between signal and action.

2. Stronger Dependence on Forecast Accuracy
When pricing recommendations are driven by predictive models, the quality of demand sensing becomes more consequential. Forecast errors can propagate more quickly into sales and inventory outcomes.

3. Closer Coupling of Merchandising and Supply Chain
Pricing decisions influence demand. Demand impacts inventory, replenishment, and store execution. Faster pricing cycles compress the distance between these functions.

Centralization and Control

Walmart has positioned its digital shelf label rollout as an efficiency and accuracy initiative. Centralized price management improves consistency between systems and store execution while reducing labor tied to manual updates.

That positioning aligns with the operational realities of large-scale retail. At Walmart’s footprint, even small improvements in execution efficiency translate into material cost and accuracy gains.

At the same time, the shift toward algorithm-supported pricing introduces standard enterprise control requirements. Organizations need clear governance around how pricing recommendations are generated, reviewed, and executed, particularly as systems become more automated.

A Broader Technology Pattern

Walmart’s patents are best understood as part of a broader shift in supply chain and retail technology.

AI and advanced analytics are moving closer to operational decision points. Forecasting models are no longer confined to planning environments; they are increasingly connected to systems that can act.

In this case, that connection spans:

Demand sensing

Price recommendation

Store-level execution

The result is a more tightly integrated operating model in which commercial decisions and supply chain execution are linked through software.

What This Signals

The significance of Walmart’s move is not tied to public debate over surge pricing scenarios. The underlying development is structural.

Retailers now have the ability to connect demand forecasting, pricing logic, and execution infrastructure into a faster decision loop.

For supply chain leaders, that represents a clear direction:

Execution is becoming more digital, more centralized, and more tightly coupled to predictive models.

The companies that benefit will be those that can align forecasting, pricing, and operational execution within a controlled, coordinated system.

The post Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution appeared first on Logistics Viewpoints.

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Supply Chain and Logistics News March 16th-19th 2026

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Supply Chain And Logistics News March 16th 19th 2026

This week’s installment of Supply Chain and Logistics news includes stories about record increases in oil prices, Rivian’s autonomous taxis, and much more. Firstly, the Trump administration has issued a 60-day waiver of the Jones Act, a century-old regulation that requires goods moved between US ports to be transported by US-built vessels, etc. Additionally, this week Uber & Rivian announced a partnership for Rivian to build 50,000 autonomous robotaxis by 2031 with over a billion dollars in investment from Uber. Schneider Electric and EcoVadis announced a partnership to target emissions in the health care sector. Lastly, DHL announces 10 warehousing sites to be used for data center manufacturing capacity, and Mind Robotics raises 100 million in series A funding.

Your Biggest Stories in Supply Chain and Logistics here:

Trump Administration Issues Pause on Century-old Maritime Law to Ease Oil Prices

The Trump administration has issued a 60-day waiver of the Jones Act. This century-old regulation typically requires goods moved between US ports to be carried on vessels that are US-built, US-owned, and US-crewed. However, with oil prices surging toward $100 a barrel due to escalating conflict in the Middle East, the suspension aims to ease logistics for vital commodities like oil, natural gas, and fertilizer. While the move is intended to lower costs at the pump and support farmers during the spring planting season, it has sparked a debate between those seeking immediate economic relief and domestic maritime unions concerned about the long-term impact on American shipping and labor.

Uber and Rivian Partner to Deploy up to 50,000 Fully Autonomous Robotaxis

Uber and Rivian have announced a massive strategic partnership that signals a major shift in the future of autonomous logistics and urban mobility. Under the terms of the deal, Uber is set to invest up to $1.25 billion in Rivian through 2031, a move specifically tied to the achievement of key autonomous performance milestones. The primary focus of this collaboration is the deployment of a specialized fleet of fully autonomous R2 robotaxis, with an initial order of 10,000 vehicles and an option to scale up to 50,000 units. From a supply chain perspective, this represents a significant commitment to vertical integration; Rivian is managing the end-to-end production of the vehicle, the compute stack, and the sensor suite, including its in-house RAP1 AI chips, while Uber provides the scaled platform for deployment. Commercial operations are slated to begin in San Francisco and Miami in 2028, eventually expanding to 25 cities globally by 2031.

Schneider Electric and EcoVadis Announce Partnership to Decarbonize Global Healthcare Supply Chains

Schneider Electric, a major player in the digital transformation of energy management and automation, and EcoVadis, a provider of business sustainability ratings, have announced a strategic partnership aimed at accelerating decarbonization within the healthcare industry. “Energize” is a collective initiative to engage pharmaceutical industry suppliers in climate action. The collaboration focuses on addressing Scope 3 emissions, those generated within a company’s value chain, which often represent the largest portion of a healthcare organization’s carbon footprint. By combining Schneider Electric’s expertise in energy procurement and sustainability consulting with EcoVadis’s supplier monitoring and rating platform, the partnership provides a structured pathway for pharmaceutical and medical device companies to transition their global suppliers toward renewable energy.

Mind Robotics, a Rivian spin-off, raises $500 million in Series A Funding

RJ Scaringe, CEO of Rivian, is positioning his new $2 billion spin-off, Mind Robotics, as a technological solution to the chronic shortage of manufacturing labor in the Western world. By developing a “foundation model” that acts as an industrial brain alongside specialized mechatronic bodies, the company aims to move beyond the rigid, fixed-motion plans of traditional robotics toward systems capable of human-like reasoning and adaptation. Scaringe emphasizes that while these machines must perform with human-level dexterity, they don’t necessarily need to be humanoid in form; instead, the focus is on creating a data-driven “flywheel” within Rivian’s own facilities to lower production costs and help domestic manufacturing remain globally competitive.

DHL Expands North American Logistics Infrastructure Amid Growing Global Demand for Data Center Logistics Services

DHL is significantly scaling its data center logistics (DCL) footprint in North America, announcing the addition of 10 dedicated sites totaling over seven million square feet of warehousing capacity. This expansion is a direct response to the explosive demand for AI-driven infrastructure and the specific needs of hyperscale and colocation data center operators. By offering specialized services like rack pre-configuration, white-glove handling of sensitive IT hardware, and warehouse-to-site transportation, DHL is positioning itself as an end-to-end partner in a sector where 85% of operators express a preference for a single logistics provider. This move not only addresses the logistical complexities of moving high-value components like GPUs and cooling systems across global borders but also underscores the critical role of integrated supply chains in maintaining the build speed of the digital backbone.

Song of the Week:

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How to Capitalize Quickly to Address Hyperconnected Industrial Demand

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How To Capitalize Quickly To Address Hyperconnected Industrial Demand

This first in a blog series offers a review of discussion that occurred during ARC Advisory Group’s 2026 Industry Leadership Forum. Specifically, it details a keynote conversation held with senior executives from Rolls-Royce, BTX Precision, and MxD.

The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production

Industrial leaders have been talking about tearing down workflow and data silos for decades. Yet here we are again. For most, the reality is that most operations and supply chains today typically don’t indicate much progress. A few leaders have figured out how to use digital tools to scale and build pathways forward, a whopping 12.9% according to our latest data (yes, that’s sarcasm). However, even as they struggle to coordinate, orchestrate, and innovate across their operations and enterprise, much less tightly collaborate outside their four walls. In a digital world, this continued capability gap, the inability to closely link market signals to responsive production and external supply chains, is very quickly becoming a liability.

Recently, at the 30th Annual ARC Industry Leadership Forum in Orlando, I had the privilege of leading a keynote discussion entitled The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production. As part of that, I moderated an excellent conversation that included Global Commodity Executive Greg Davidson of Rolls-Royce, CEO Berardino Baratta of MxD, and CRO Jamie Goettler of BTX Precision.

In this four-part series, we will explore that conversation fully, digging into how the “fabric of market demand” has fundamentally changed, and why structural modernization, both human and technological, is no longer just an option. It is an industrial imperative that will increasingly determine who wins in disrupted markets.

Why Legacy Workflow Will Actually Get Modernized

If we examine the present through the lens of the past, the fundamental laws of supply and demand haven’t really changed. What has changed is the hyperconnectivity of the world and our compressed time to both reward and volatility.

The hard truth is that legacy linear workflows simply do not work in hyperconnected, digitally-driven environments, which are non-linear by nature. As our industrial environments become more digital, they naturally open up countless new ways for how things can get done and how risk can enter the organization. As a result, disruption has shifted from a rare event to a fairly continuous and pervasive reality. In this new reality, responsiveness differentiates you from the competition, and lag time kills.

To survive and thrive in non-linear environments, tighter, integrated ecosystems are required, where silos are actively torn down or redesigned so that barriers to value can be continuously identified and quickly eliminated. At the core, this concept is unfolding around data access, contextualization, and sharing. It provides the urgency behind the need for building industrial data fabrics.

This rewiring certainly extends beyond operations and enterprise processes, enabling the entirety of the supply chain to be judged on its collective responsiveness to the market, all the way down to the individual company level. In this scenario, data can quickly point out laggards who limit value. As the orchestrators of these supply chains identify these limitations on value, they quickly break off and discard the connection and move on without these weak links.

Pillars of the New Fabric of Demand

To achieve necessary level of operational and supply chain responsiveness, the roles of every entity within an ecosystem must be rethought. In the subsequent three blogs of this series, we will take a deep dive into the three distinct pillars that make up this modern architecture, but I’ll begin by laying them out here:

The Market Signal is the catalyst of the entire ecosystem. It dictates the “what” and the “when,” defining what value, success and risk look like in real-time. In blog 2, I’ll explore how to move from reactive assumptions to proactively capturing the market signals that actually matter.
The Demand Architect is moving beyond traditional order-taking. The Demand Architect designs and orchestrates the ecosystem, aligning external partners as true extensions of the enterprise. In blog 3, I’ll discuss the structural agility required to lead this response, rather than just manage a process.
The Agile Partner is the engine of execution. The Agile Partner links supply chain dynamics directly to the shop floor, differentiating themselves through their responsiveness to the market signal. In the final blog in the series, I’ll tackle how data transparency and trust become technical requirements, not just buzzwords, without exposing mission-critical IP.

Building the Modern Industrial Enterprise

Legacy workflows cannot survive in a non-linear world. Industrial organizations must re-architect operations and ecosystems for real-time responsiveness and secure, transparent collaboration. To do so, they will need to:

Improve the measurement of responsiveness: Efficiency and margin-squeezing are important, but they aren’t game-changers. Your competitive edge now relies on how quickly you can adapt to market signals.
Embrace transparency over secrecy: Modern collaboration requires providing a contextualized “lens” into production status without compromising proprietary IP or cybersecurity. Industrial data fabrics are key.
As always, view technology as a tool, not an outcome: Industrial data fabrics are needed to break silos and AI to manage complexity and improve accuracy and speed of decisions. However, the age-old adage remains true. Just because you can apply AI to something doesn’t mean you should. It must be grounded in measurable Value on Investment (VOI), not just return.

The New Fabric of Demand Blog Series

This is the first in a series of four on The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production. Over the coming days, I’ll publish a perspective from each of the three pillars of the new fabric of demand:

Pillar 1: The Market Signal
Pillar 2: The Demand Architect
Pillar 3: The Agile Partner

By Mike Guilfoyle, Vice President.

For more than two decades, Michael has assisted organizations, including numerous Fortune 500 companies, in identifying and capitalizing on growth opportunities and market disruption presented by the effects of digital economies, energy transition, and industrial sustainability on the energy, manufacturing, and technology industries.

The post How to Capitalize Quickly to Address Hyperconnected Industrial Demand appeared first on Logistics Viewpoints.

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