Art of Supply
“It's also important to note that while our stores are fulfilling more digital orders it's not coming at the cost of in-store sales…our stores as hubs strategy isn't putting our core business at risk. It's simply helping us grow faster.” - Brian Cornell, Target CEO, in 2019 In August, Target announced that they would be backing away from their ‘stores as hubs’ program. The program started in 2017 and used dedicated spaces in the backrooms of regular Target stores to fulfill the company’s digital orders. The ‘stores as hubs’ program was rolled out with huge fanfare… and a...
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If you want to operate a truck over 26,000 pounds, earn money for doing it, and cross state lines… then you need to have a Commercial Driver’s License (CDL). Truck drivers are essential to the economy, and so having a CDL is a real asset. It offers job security and flexibility, as well as solid earnings and great benefits. In fact, CDLs are so valuable that even people who haven’t earned one are willing to break the rules to get one. But having unqualified commercial drivers on the road is a danger to everyone. In this episode of the Art of Supply podcast, Kelly Barner covers the right...
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“We’re committed to supporting U.S. suppliers involved in every key stage of the chip-making process — from the earliest stages of research and development, to final fabrication and packaging.” - Sabih Khan, COO at Apple In April, President Trump said that he wants the Apple iPhone to be manufactured in the United States. The iPhone’s 2,700 components currently come from 187 suppliers in 28 countries, according to an article from the Financial Times, and less than 5 percent of the total components are manufactured domestically. Apple ships 438 iPhones every minute, and 85...
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The supply chain faces a lot of challenges right now: geopolitical unpredictability, tariff uncertainty, the end of de minimis exemptions, and constantly changing regulations worldwide. It doesn’t need one more problem - but it has one anyway. And that’s cargo theft. According to Senator Deb Fischer (R-Neb), since 2021, there has been a 1,500% increase in cargo theft incidents in the U.S., costing $35 Billion annually. The Transportation Intermediaries Association (TIA) has reported that cargo theft grew by over 600% between November 2022 and March 2023 alone, less than 6 months. ...
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“Today, the U.S. ranks 19th in the world in commercial shipbuilding, and we build less than 5 ships each year, while the PRC is building more than 1,700 ships. In 1975, the United States ranked number one, and we were building more than 70 ships a year.” - Katherine Tai, U.S. Trade Representative (2021-2025) The Trump Administration is on a mission to make shipbuilding great again… a bipartisan effort that started during the Biden Administration. In the spring of 2024, the U.S. Trade Representative released the findings and recommendations of a Section 301 investigation into whether or...
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“If you’re as good as you say you are, you should be able to keep your cost structure down, deliver the mission and the outcome, and still make a margin.” - Josh Gruenbaum, Commissioner of the Federal Acquisition Service at the GSA The General Services Administration (GSA), responsible for Federal contracting, has been making DOGE-style headlines of their own this year. In late June, they sent a letter to a number of large consulting firms under contract, looking for opportunities to reduce spending and better understand the work that is underway. Josh Gruenbaum, who is overseeing the...
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“We've had this whole period of trying to manage supply chains for lowest cost, whereas I think now we're managing for resilience at a managed cost and at an acceptable cost.” - Tim Richardson, Founder and CEO, Iter Consulting Supply chains aren't really chains anymore. They're complex, interconnected networks. Supply networks are anything but predictable. What used to be straightforward relationships between suppliers and customers have become webs of interconnected partnerships, each with its own risks and opportunities. The leaders and teams who succeed in this environment...
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“The way you do one thing is the way you do everything, and we found, over and over, that precision in the smallest of details translated to precision in the bigger ones.” - Will Guidara, Unreasonable Hospitality There are a lot of opportunities for crossover learning between running a restaurant and working in procurement or supply chain. Both fields are highly operational and process driven, not to mention measured by known, benchmarkable performance metrics. In the book “Unreasonable Hospitality: The Remarkable Power of Giving People More than They Expect” by Will Guidara, we...
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“There is a world where we can have a much more dynamic supply chain. Certainly, the current set of brands that are experiencing the squeeze from the tariffs would definitely benefit from being able to pivot their supply chain pretty quickly.” - Anthony Sardain, Founder and CEO of Cavela For all of the enthusiasm about AI, global sourcing is one of the processes that has remained predominantly human. Between the complexity of specifications and the relationship-based exchanges of information, it has been too ‘messy’ for straight automation - until now. Anthony Sardain is the founder...
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“Life is short and it ends, the clock is ticking. Don’t get all wrapped up in your personal self, that’s a very unhealthy thing to do.” - Fred Smith, Founder of FedEx (1944 - 2025) On June 21, 2025, the business world - more specifically the supply chain world - lost a giant. FedEx Founder Fred Smith passed away at the age of 80. Frederick Wallace Smith was born in Marks, Mississippi in 1944. According to common anecdotes, he first imagined a company that could provide overnight delivery for an economics paper he wrote while studying at Yale in 1965 - and he got a C because the...
info_outlineThere have been a number of efforts to regulate a transition to lower logistics-related emissions, and all of them involved the state of California and the Environmental Protection Agency (EPA).
California always plays a unique role in these debates because they have the most air pollution in the country and also the toughest emissions regulations. The California Air Resources Board (CARB) predates the EPA. In the past, they have been able to make their own rules, only requiring waivers when newly proposed standards are tougher than Federal standards.
On May 22, 2025, the Senate voted to strip California of its ability to impose tougher standards on heavy duty trucks and ban the sale of new gas-powered cars by 2035.
California may be down, but they are certainly not out. They are using other creative ways to regulate the emissions associated with logistics.
In this episode of Art of Supply, Kelly Barner looks at this alternate approach to regulation:
- The Warehouse Actions and Investments to Reduce Emissions Program (known as WAIRE) and the Warehouse Indirect Source Rule (ISR)
- How these rules are are intended to work and how they are being enforced
- Whether this alternative approach will be effective in achieving its objectives
Links:
- Examining the Practicality of the EV Truck Mandate
- Nebraska v. California: The EV Trucking Transition
- Who will decide the future of EV trucking?
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