Supply Chain (In)security

Welcome to the 115th edition of The LogTech Letter, and the first of 2023!. TLL is a weekly look at the impact technology is having on the world of global and domestic logistics. The last time I sent out a newsletter was…well it was a long time ago. Let’s just leave it at that. The reality of prepping in January and early February for TPMTech and TPM23 (my company’s biggest event of the year) meant something had to be sacrificed. So a temporary hiatus turned into a longer hiatus. But The LogTech Letter is back and I’m super excited.

As a reminder, this is the place to turn on Fridays for quick reflection on a dynamic, software category, or specific company that’s on my mind. You’ll also find a collection of links to stories, videos and podcasts from me, my colleagues at the Journal of Commerce, and other analysis I find interesting.

For those that don’t know me, I’m Eric Johnson, senior technology editor at the Journal of Commerce and JOC.com. I can be reached at eric.johnson@spglobal.com or on Twitter at @LogTechEric.

I’m back, baby! Well, sort of. My first post since mid-January is actually a guest contribution from my friend Jonathan Kempe, a New Zealand-based technologist and consultative with a weird obsession with supply chain (like me) and a way with words. Today, Jonathan shares with us a screed that’s part philosophy, part guidance, and part warning about how to focus on a supply chain technology objective. Take it away Jonathan!

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Over the next two years, the most highly productive and profitable companies will be those that embrace the inflection, actively filter out the wrong noises, and purposefully amplify the right signals.

A principle that is as true for supply chain security as it is for the human heart: Given the right conditions, and enough time, all things will be disrupted, damaged or broken.

Supply chains and hearts are noticeably resilient, but both have measurable limits. And while adaptable to traumatic circumstances, each will eventually reach a tipping point; a point of inflection, where a foundational shift alters the status quo, rewrites the rules, forcibly adjusts expectations, establishes new methodologies, and evolves operational procedures.

Global supply chains have endured much heartache, and are now at a significant point of inflection. The world has rapidly changed to such an extent that we nonchalantly accept we are hyper-connected, and everything we are connected to, is hyper-vocal.

Always on. Always broadcasting. All the time. From our toothbrushes, to our cloud-enabled home security cameras, permanent connectivity forces upon us an endless feedback stream from what we own, use and manage. Feedback. Data. Data-driven feedback. Noise.

By extension, we undeniably exist in an epoch where data is everywhere. The transformational presence of readily-available information is observable at every stratified layer; as we navigate the deepest trench in the ocean, or coordinate plans to explore the furthest reaches of space. Data integration evolved alongside other common processing layers. Physical converged with Cyber. OT became IT. And coordinated groups of human operators now feverishly oversee the exchanges that take raw data inputs, and translate them into actionable insights, augmented by AI-powered tools that make information more accessible, digestible, composable and… noisy.

Connectivity conducts this generated data so it can be processed and consumed anywhere. To anyone. At any time. Me to you, you to them, them to everyone. Locally. Globally. Instantly. From the smallest BLE-pairing frame, to an RF packet hurtling back from low-earth orbit; ubiquitous, convenient, necessary. And disruptive. Previously uncontested stars now vie for prominence with a plethora of satellites that provide connectivity everywhere, accurately, inexpensively, and…noisily.

Everyone has data. Everything is connected. The noise-infused inflection.

Embracing the inflection is a critical first step. Any time spent denying it, is time wasted. By acknowledging such, you aren’t yielding to an uncontrollable future. You are simply and astutely recognizing what was always to be, now is. The most successful path will be trod by those who embrace this the quickest, adapt the fastest, then rewrite their own rules, and bend their contextual operating procedures - in harmony with their people - accordingly.

Rather than being alarming, this should bring a degree of comfort: My competitors know as much as I do. They are as connected as I am. I do not panic. Instead, I act with surety and discipline, relishing the fact that the Goliath to my David is now standing on the same, recently-leveled, and profoundly-rebalanced battlefield.

Enter the noise. The distractions. The clamor. AI-this. IoT-that. PhySec-this. CyberSec-that. We must have blinky lights! We must deploy shiny button! We must GPT-all-the-things! And suddenly the leveled battlefield is skewed again, shifting chaotically beneath your feet, somehow rife with previously invisible pitfalls and snares.

Surety, gone. Momentum, quelled. Confidence, shattered. A new stance is adopted: Pensive. Skeptical. Risk averse. Indecisive.

You can, and must filter out the noise by purposefully amplifying your signal. It’s tempting to insert new technologies into a glaring operational gap. It’s tempting to pretend a new tool will supplant a lack of procedural clarity. It’s altogether far too tempting to ignore hidden cost-centers, and instead be distracted by deploying a new solution that’s been glossy-pamphlet advertised as a sure fire way to paper over any and all behavioral inadequacies and professional ineptitude.

Stop. Amplify your signal. Before you proceed any further, ask and answer: What clear objectives do you want to achieve? What are your priorities? What are your specific risks? What is your expected ROI? Is what you are attempting clearly aligned with your business objectives? This is as true for a database deployment, as it is for a holistic redesign of your entire supply-chain security strategy.

Oh, and while you do this, ignore your competition. They are not your greatest hurdle and will distract you from completing your goals. One thing is certain: They are not concerned about your noise, and are likely busy working on their own signal. Need a simple yardstick? What you are building should be more obvious than what you are critiquing. What you stand for, clearer than what you stand against. Your collaborative output, more noticeable than your conversational input.

Supply chain security is a multi-layered, complicated discipline with many moving parts, and a profusion of participants, all with competing needs and differing operational requirements. Proficiency at a global level requires a detailed grasp of logistics, economics, trade, insurance, IT and OT systems, national security, personnel and asset management, and niche skills such as identifying risks that exist when physical security and cybersecurity converge.

A complex landscape of solutions attempts to bring order to this chaos; confusing for the uninitiated and well-experienced, alike. Some solutions perform well, others do not. Some enhance security, others do not. Some increase transparency, others do not. Some tout visibility, while others actually bring it; the latter rarely occurs in a way most would expect.

Supply chains also tend to turn finely-crafted, assumption-laden theories, and the ‘same old, same old’ - along with the hearts attached to them - into disrupted, damaged or broken equivalents. When this happens repeatedly, it breeds insecurity; a paralyzing state characterized by fear-driven conclusions, and collective inaction. A state none of us can afford to dwell in for any protracted period of time.

There is a better way. Acknowledge the inflection, consciously tune out the wrong noises, and amplify the right signals. If you do, you’ll be counted among the select few who were able to maintain productivity and profitability, during downturn and disruption.

Here’s a roundup of recent pieces on JOC.com from my colleagues and myself (note: there is a paywall):

• Let’s start with an item I posted yesterday, a brief exploration of recent research by my S&P Global colleague Mark Fontecchio on logistics technology investment and priority. Mark presented these findings in depth at TPMTech in late February. You can download the entire report here.

  

• Overhaul has zagged where other visibility providers have zigged, focusing intently on reducing security risk to cargo. This week it announced a $38 million equity injection, fresh off a recent acquisition of another risk management provider, with plans to grow internationally.

• We’ve written extensively about street turns in this newsletter the past six months, and this week, a new startup aiming to tackle this problem emerged from stealth with $1.5 million in seed funding (money it raised last summer). Qualle has a strategic partner in Maersk and is working with five other liner carriers, offering an empty container marketplace and street turn tech.

• The GSBN announced in late February is was working with Navis to share earliest return date (ERD) data from terminals using Navis’ terminal operating software to exporters through a free GSBN-developed app.

• BlueCargo landed a $15 million round in late February, money it will use to expand its container management software from Southern California and New York/New Jersey to other US ports.

• I wrote about project44 and Vizion both providing terminal visibility tools. Terminals have long been a black hole of information for shippers and 3PLs, so no surprise to see two of the more well-known providers tackling this area.

• A nice recap of my conversation at TPM23 with new Flexport CEO Dave Clark.

And here are some recent discussions, reports, and analysis I found interesting:

• This post on Maersk changing its container detention billing practices led to this piece on JOC.com.

• A worthwhile on-demand webcast from my S&P Global colleagues about what scope 3 emissions are and why they matter.

Some upcoming events I’ll be involved in:

• I’ll be in Houston for S&P Global’s World Petrochemical Conference, moderating two sessions at the March 21 Supply Chain, Transportation, and Logistics Summit. The first session will see Mark Fontecchio (noted above) talking about his research into logistics technology and what it means specifically to chemical shippers. The second session will dive deep into specific solutions, from TMSFirst, Nautilus Labs, and Sedna. Check the agenda here and register here.

  

• I’m moderating a March 30 webcast on my favorite software topic: freight procurement. Be sure to register for this free event - speakers TBD!

• I’ll also be leading two sessions at the Journal of Commerce’s Breakbulk and Project Cargo Conference April 19-21 in New Orleans. The first is a session on understanding what the energy revolution means to breakbulk and project cargo shippers. And the second looks at technologies helping to make the industry more efficient. Check the agenda here. And register here. New registrants can use the code ERICJ25 to get 25% off registration.

Disclaimer: This newsletter is in no way affiliated with the Journal of Commerce or S&P Global, and any opinions are mine only.