Guest: Tom Nightingale of AFS Logistics on the UPS labor settlement; Prospects look good for 2024 warehouse projects; Extending the life of robots

Jul 28, 2023

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Our guest on this week's episode is Tom Nightingale, CEO of AFS Logistics. UPS and the Teamsters Union that represents 340,000 UPS drivers and warehouse workers reached a tentative agreement this week on a new labor deal. What will this mean for shippers? Will rates see a rise? And how will other carriers respond? Our guest has some insights on how this and other recent labor negotiations will impact transportation providers and the supply chains they serve.

We saw a slowdown in warehouse construction over the past year following that post-Covid boom when accelerating e-commerce and unprecedented demand for logistics services in general caused a surge in the need for warehousing space. The recent slowdown is due to declining e-commerce activity and rising interest rates over the past year, but it looks like we may hit bottom and see growth heading into 2024, in both warehouse construction and related warehouse automation projects.

Robotics have certainly impacted distribution in recent years, with tens of thousands of units now roaming the world's warehouses. Many of these are provided under a Robots-as-a-Service model, or RaaS, where the manufacturer owns the robots and simply leases them based on run time or products moved. Therefore, it is an advantage to keep the robots in top-notch condition to assure uptime and profitability. We discuss how one company, Locus Robotics, is building a new facility and capability to support that model.

DC Velocity's sister publication CSCMP's Supply Chain Quarterly offers a podcast series called Supply Chain in the Fast Lane. It is co-produced with the Council of Supply Chain Management Professionals. The current series features Transportation Tech. Go to your favorite podcast platform to subscribe and to listen to past and future episodes.

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Podcast is sponsored by:Travero Logistics

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