filter-solution-technology

As volatility becomes increasingly constant in today’s supply chain, manufacturers and retailers are prioritizing the development of more agile and resilient supply chains. For manufacturers and retailers, their ability to meet customer demand, maintain competitive pricing and protect their brand’s reputation depends on an effective supply chain and the ability to respond quickly to shifting needs.

The Growing Need for Supply Chain Diversification

Economic pressures, tariffs and escalating geopolitical tensions have highlighted the risks of over-reliance on single-source supply bases, especially for businesses that rely on just-in-time inventory and rapid replenishment cycles. If products don’t arrive on time, retailers risk stockouts, which cost them nearly $1 trillion worldwide annually and create a negative customer experience that can destroy loyalty and lead to higher operational costs. For manufacturers, shipment delays can result in downed production lines and costly delays.

As a result, many companies are working to diversify their procurement networks, building on a broader trend that began several years ago. Vietnam, Mexico and India are among the countries that have experienced a surge in exports to the United States, while Chinese exports to the U.S. have dropped.

Diversification is expected to intensify as companies rethink their long-term sourcing strategies. Strategies like moving production closer to end markets, adopting regional supply hubs and investing in supplier redundancy are becoming standard best practices rather than contingency plans.

The Use of AI and Automation Is Increasing

Big data analytics, artificial intelligence and automation are becoming essential tools for optimizing supply chains. Manufacturers and retailers are increasingly adopting AI to improve demand forecasting, optimize inventory and streamline the supply chain.

AI can also optimize delivery routes by considering demand trends, real-time traffic, weather, fuel efficiency and more.

Within the warehouse, AI and machine learning can detect anomalies and enhance forecasting in near real time, enabling operators to make data-driven decisions quickly. For instance, AI could alert a supervisor if one area is running 20 minutes behind while another is ahead, then suggest how to reallocate labor accordingly.

Automation within the warehouse is also increasing to manage high-movement facilities effectively. Automated sorting and human-assist robotics are among warehouse technologies that are changing how goods move, boosting productivity and allowing human workers to focus on higher-value tasks, such as operational decision-making and safety enhancements.

The Customer Experience Hinges on Effective Supply Chains

The National Retail Federation forecasted that 2025’s U.S. retail sales will grow between 2.7% and 3.7% over 2024 to between $5.42 trillion and $5.48 trillion. At the same time, e-commerce continues to increase, with global online retail sales nearing $6.3 trillion. In 2024, the U.S. e-commerce market reached $1.19 trillion, accounting for approximately 16% of all retail sales.

Supply chains have become increasingly customer-facing, especially in omnichannel retail environments, where expectations for consistency and accuracy across both digital and physical touchpoints are higher than ever. The customer experience depends on supply chains, which directly impact store replenishment, delivery speeds and e-commerce fulfillment.

As expectations increase, retailers are under growing pressure to manage inventory in real time. Visibility is critical for retailers to manage inventory across stores, distribution centers and online channels effectively. Having both high-level and granular visibility allows shippers to make data-driven decisions about inventory and get ahead of potential disruptions. 3PLs help shippers adjust delivery schedules in response to real-time inventory levels, demand fluctuations and store needs.

Transportation and Labor Costs May Increase

Freight rates within the trucking industry have remained low, but they started to experience a modest market correction throughout 2024.

Costs are expected to increase in 2025. Higher costs can squeeze retail profit margins or lead to higher prices for finished goods, but there are several ways to control costs.

Network optimization and evaluating the network as a whole can help shippers and their logistics providers improve the overall engineering of the supply chain. The goal is to increase efficiency and reduce transit times, which can lead to significant cost savings. As a third-party logistics provider, Penske can help retailers evaluate sourcing locations, delivery points and routes to optimize their networks. Engineers run ‘what if’ scenarios to identify the ideal solutions.

Increased visibility also helps control costs by not only streamlining inventory management but also reducing the risk of a disruption. Minimizing disruptions lets retailers and manufacturers alike avoid the need for expedited freight, which adds to the overall transportation spend. Other tools to control transportation costs can include taking control of inbound freight and using dedicated contract carriage.

ClearChain® Control

Take Your Supply Chain to the Next Level With Visibility, Orchestration, Insights and Control

The management of supply chains continues to take on greater importance in boardrooms around the world. As the business community makes considerable strides in developing supporting infrastructure — churning out more graduates of supply chain programs and pouring capital into technology firms — businesses see an opportunity for insights and improvement within the vast amounts of data created by supply chain activities.

Driven by these tailwinds, digital supply chains are evolving before our eyes. Yet businesses have significant investments in legacy systems and teams that manage different supply chain pieces, including various disciplines such as planning, procurement, manufacturing, transportation and inventory management, and order fulfillment, not to mention the related flows of financial information and data. The lack of familiarity or integration of disparate systems across functions can also impede progress. Sometimes, just making sure the right people have the correct information is not easy in large, complex organizations.

The Next Generation of Supply Chain Control

ClearChain® Control harnesses the power of artificial intelligence (AI) and machine learning (ML) to manage supply chain complexities in a world of increasing disruption. With ClearChain Control, visibility is just the beginning. ClearChain Control gives you insights to interpret, understand and act in real time to manage any supply chain challenge you may face.

With ClearChain Control, you will gain:

  • Visibility
  • Orchestration
  • Insights
  • Control

Real-Time Visibility Into Your Freight

ClearChain Control integrates all relevant systems and data streams, giving you the ability to see shipments from end to end, across suppliers, carriers, internal systems, all the way to the customer. This integration includes data streams that cut across functions and systems, and data streams that are internal to the shipper or reside within systems run by their trading partners. This high level of integration creates status visibility across all nodes, including purchase orders, inventory and warehouse capacity. Thanks to Penske's expertise in integration, ClearChain Control brings these benefits and more without requiring changes to any systems you may already have in place.

Orchestration of Your Supply Chain

Visibility is essential but unto itself, it is not a solution. ClearChain Control positions a team of Penske practitioners working side by side with a shipper's supply chain staff to achieve measurable supply chain outcomes — together. ClearChain Control provides a relevant landscape of all supply chain activity in a single view for executives, enabling the management of strategy. It also offers moment-to-moment actionable insight to supply chain practitioners, identifying exceptions, orchestrating resolution, taking corrective action. This sets the stage for the synchronization of planning, order management, inventory and transportation.

Gaining Meaningful Insights

The focus of ClearChain Control is on achieving outcomes, and to get there, Penske brings a focus on data. Aligning the supply chain components opens the door to new KPIs. Predictive escalations around inventory and order fulfillment help manage priorities like on-time in-full (OTIF). Machine learning algorithms facilitate prescriptive resolution, serving up corrective action opportunities that drive value across the supply chain.

Taking Control

ClearChain Control lets you discover, interpret and act on real-time information from the entire digital landscape, including third-party data sources. Leveraging the power of machine learning lets you stay ahead of disruptions, giving you the control — the power — you need to take your supply chain and your business to the next level. The future of supply chain management is here today. ClearChain Control.

Your production line goes down. Workers stand idle. The clock ticks. The stress builds. Every minute means more revenue lost, never to be found again.

[Read more...]Show less

Information powers today’s supply chain. That’s why your data is one of your most valuable assets. Any potential risk to your data security leaves you vulnerable to theft, missed deliveries and poor customer service.

[Read more...]Show less

You have set routes you run regularly. But if you have empty return loads, you could be losing valuable revenue. Even more, empty return loads hinder your efforts to provide the highest level of customer service and the most dependable deliveries.

[Read more...]Show less

At Penske Logistics, safety is not characterized solely as a priority; it is one of the company's core values. This philosophy reflects the importance of safety, a small word for a vast area of responsibility that has become more challenging in line with the growing complexity of the logistics business.

[Read more...]Show less

Just as artificial intelligence (AI) and machine learning (ML), remote sensing, and predictive analytics are transforming supply chain operations, they are also bringing huge changes to safety programs.

[Read more...]Show less

In tandem with the challenge of adopting smart manufacturing technology, manufacturers are grappling with the digital disruption of supply chains.

[Read more...]Show less

The movement of goods is being transformed through the power of data-driven insights

An efficient and reliable supply chain gives companies a competitive advantage. Yet shippers and third-party logistics (3PL) providers must be agile to meet the supply chain's increasing level of complexity.

[Read more...]Show less

Shippers rely on their third-party logistics (3PL) partners for a broad range of logistics and supply chain services. To forge a successful relationship, shippers and 3PLs must emphasize data and communication, according to the 23rd Annual Third-Party Logistics Study.

[Read more...]Show less

Results and Findings of the 29th Annual Study

The Annual Third-Party Logistics Study reports the results from a survey of shippers and 3PLs, providing perspectives on their relationships, priorities and challenges. Data-driven approaches and emerging technologies are changing the way supply chains are navigated today.

This year's report examines the current trends and critical roles that shippers and 3PLs play in the supply chain. The top findings include:

  • 3PLs improve customer service, reduce costs and drive innovation
  • Supply chain change management is essential, driven by demand and technology
  • Visibility and technology are key priorities for shippers and 3PLs
  • AI automates data analysis, offering a competitive edge for 3PLs
  • Fast delivery is critical, with two-day shipping a key differentiator
  • Nearshoring and labor trends are shaping future supply chains

Within the warehouse, automated sorting, human-assist robotics and other once-futuristic technologies have become a reality. They are transforming the movement of goods, improving productivity and freeing up human talent to focus on more important operational decisions and safety improvements. The ability to supplement labor and remove some of the remedial and repetitive jobs is becoming increasingly important as warehousing and distribution center labor becomes harder to find.

[Read more...]Show less

Technology is transforming the supply chain, bringing greater visibility, increased efficiency and more control. As a result, shippers and their logistics providers are becoming more agile, flexing to meet shifting supply chain needs and reducing operational costs.

[Read more...]Show less

Technology is advancing at a rapid pace, and supply chain leaders are investing in emerging tech solutions to improve business operations, optimize processes and enhance sustainability. As a result, supply chain models are undergoing a profound transformation, and logistics providers and shippers agree that several technologies are not only changing operations today but also hold significant potential for their organizations.

[Read more...]Show less

In a supply chain, every decision depends on data, so data integrity is critical. Accurate and timely data ensures supply chain partners hit their targets, comply with internal processes, make informed decisions and streamline processes while controlling costs.

[Read more...]Show less

Penske Logistics is utilizing machine learning technology to further automate the process for customer goods that are being handled at a distribution center. Penske is the first Blue Yonder customer to employ their innovative Yard Management solution.

[Read more...]Show less