Guest: Maggie Barnett of LVK on managing supply chains with on-again off-again tariffs; The logistics economy picks up speed; The challenges of applying Generative AI

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Feb 7, 2025

Maggie Barnett discusses the recent turmoil surrounding tariffs, especially the unpredictable changes affecting Canada, Mexico, and China. She offers insights on how supply chains can adapt in this fluctuating environment. The logistics sector is experiencing notable growth, driven by rising inventory and economic activity. Meanwhile, the adoption of generative AI is on the rise, yet companies face challenges in achieving significant productivity gains. The conversation highlights the need for better AI integration and the evolving role of third-party logistics providers.

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INSIGHT

De Minimis Disruption

Many e-commerce companies, especially those sourcing from overseas, rely on the de minimis rule to avoid tariffs.
New tariff implementations and changes to de minimis are disrupting these established business models.

INSIGHT

Optionality over Optimization

Optimizing supply chains for lean practices is no longer the focus in 2024.
Optionality is key, as trade regulations and tariffs can change rapidly.

ADVICE

Finding New Partners

Introduce new vendors and partners, especially US-based 3PLs.
Take time to interview and visit warehouses to find trusted partners.

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Our guest on this week's episode is Maggie Barnett, CEO of third party logistics company LVK. It has been a whirlwind week in Washington. First the administration announced shocking new tariffs. Then within hours those new tariffs for Canada and Mexico were called off and postponed for a month. New Chinese tariffs remain. With all of the back and forth and uncertainty, how are supply chains to plan for their future? Our guest offers some advice and also discusses the changing de minimis rules for importing small-value items that had formerly been exempt from tariffs.

Economic activity in logistics expanded in January, growing at its fastest clip in more than two years; that’s according to the latest Logistics Managers’ Index (LMI) report, released this week. We look at the solid numbers and what they mean for the near-term future of supply chains.

Artificial intelligence is one of the biggest buzzwords of the year, but a new study shows that although most supply chain organizations are testing it out, a lot of them are running into challenges. This news comes in a new survey from the analyst group Gartner that found that generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI.

Supply Chain Xchange also offers a podcast series called Supply Chain in the Fast Lane. It is co-produced with the Council of Supply Chain Management Professionals. A series of ten episodes is now available on the "State of Logistics." The episodes provide in-depth looks into the current states of key transportation modes, such as trucking, rail, air, and ocean. It also looks at inventory management, 3PLs and more. All ten episodes are available to stream now. Go to your favorite podcast platform to subscribe and to listen to past and future episodes. The podcast is also available at www.thescxchange.com.

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Podcast is sponsored by: Zebra Robotics Automation

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