Logistics Matters with DC VELOCITY
Guest: Zac Rogers of Colorado State University on supply chains in 2025; What ports want from the new administration; Cutting corners on the job
Jan 17, 2025
In this episode, Zac Rogers, Associate Professor of Supply Chain Management at Colorado State University, offers a deep dive into the logistics landscape as we head into 2025. He discusses the vital role of the Logistics Managers' Index in understanding supply chain health. Zac highlights the eight-point wish list from the American Association of Port Authorities, addressing urgent policy needs. He also reveals alarming trends in workplace safety, where workers are pressured to cut corners, jeopardizing compliance and safety. The talk balances challenges with optimism for future improvements through technology.
23:49
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Quick takeaways
- The logistics sector is shifting from just-in-time to just-in-case inventory practices to adapt to emerging global uncertainties and demand pressures.
- Workforce quality and safety are at risk as employees face increased pressures, prompting a concerning trend of cutting corners in operations.
Deep dives
Health of the Logistics Economy in 2025
The logistics economy is showing signs of recovery as 2025 begins, with inventory levels stabilizing and consumer demand appearing strong. The Logistics Managers Index (LMI) indicates that inventory levels are neutral, suggesting retailers have sold through much of their stock, which bodes well for transportation and warehousing utilization. Recent metrics show transportation prices are increasing, reaching levels not seen since early 2022, while transportation capacity remains steady, indicating a gradual and sustainable growth. This improvement signifies the best outlook the logistics industry has experienced in several years, moving away from the volatility seen during the pandemic.
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