Dr. Terry L. Esper is an associate professor of logistics at the Fisher College of Business of The Ohio State University. He has published several articles on issues associated with retail logistics and supply chain management strategy in leading academic and managerial outlets.
We’ve all seen the news. The rallies and protests triggered by the killing of George Floyd have taken center stage all across this country, as persons of all races and ethnicities gather in city streets to express frustration, hurt, and anger. These are, indeed, tense and “charged” times. Times that call for tough conversations within communities, about how racism, discrimination, biases, and differences in viewpoints shape the ways in which those communities function. This includes the supply chain management (SCM) community.
We have had long-held conversations regarding gender disparities in SCM, but the widescale focus on the George Floyd incident opens a door for us to bring the race conversation to the forefront. There are many things that we could discuss on race, but as a researcher of last-mile logistics and home delivery services, I’d like to raise one concerning issue for us to talk about, ponder, and hopefully act on.
I’ve been in SCM for over 25 years. I started as an intern for a state department of transportation, worked for a major carrier in claims and billing, launched my professional career managing small package transportation for a major corporation, and throughout these experiences, worked my way through college and graduate school, eventually earning a PhD in SCM. For the last 20 years, I’ve been in the SCM academic community, serving on faculty at many of the field’s most well-respected university programs. In this capacity I not only educate emerging SCM talent, but I also spend considerable time studying strategic SCM issues (like last-mile logistics) and working with several major corporations in the process. And, I must admit...In my many years of observing our industry from these various viewpoints and perspectives, never... never have I ever... been as concerned and fearful for the safety of frontline logistics and transportation workers as I am today.
Let me be more specific by adding another of my characteristics to my credentials—I’m a black man. It is that part of my identity that triggered this piece, because while I am generally concerned about the safety of all frontline logistics workers, especially in light of COVID-19, I am most and directly concerned about my fellow black men in our SCM community that are charged with the task of providing last-mile delivery services. Let me also be clear in saying that this is not a new concern. It’s been brewing for some time. But a series of recent events, including the situation in Minneapolis, Minnesota, have brought my concern to a boiling point—prompting me to pull up a chair and attempt to start a conversation.
In case you missed this story in the news... a black male delivery driver was recently stopped by members of a neighborhood community demanding answers regarding his reasons for being there. These weren’t simple inquiries, mind you... they were demands, laced with threats of calling law enforcement, apparently out of concern for the safety of their neighborhood. The driver, recording it all via a mobile device, was eventually “allowed to leave”... but only after the delivery recipient intervened, assuring neighbors that the driver had a valid reason for being in their community.
Fast forward a few days, and another such incident occurs. In this case, a pair of FedEx independent contractors, black men in full FedEx uniform, deliver a package to a home. Upon leaving, a resident of the home chased and confronted the men, yelling threats and verbal attacks. After law enforcement intervention, the resident claimed that he had done so out of fear that these men were potential burglary threats. Again, the incident was video captured by one of the drivers.
Fast forward another week, and yet another example surfaces. A black man attempting a DoorDash delivery in an Arizona apartment complex was met by a resident with a drawn firearm. The resident claimed to be afraid of the delivery worker and held him at gunpoint until law enforcement arrived.
Now, some would classify these as isolated incidents, perhaps blown out of proportion by social media retweets and reposts. Some might argue that these are nothing more than simple misunderstandings that were captured and shared, in order to highlight one side of the story. I disagree. Either way, this disturbing pattern allows for a broader conversation because what I know for sure is that these situations represent the oft unspoken fears and concerns that many black men shoulder when navigating neighborhoods to make deliveries.
Stories abound where African Americans, particularly men, are reported to law enforcement for what is found to be benign occurrences, simply because their presence and/or disagreement are interpreted as a threat of significant harm. A most recent example involves Amy Cooper, a New York Central Park patron, who, upon being asked to leash her dog by a black man, called law enforcement and falsely claimed that her life was in danger...all while being recorded. This story was shocking to many, but came as no surprise to black men. We know that we are often viewed as a threat. It is an awareness that we carry, and an unfortunate tax of physicality that we pay. Yet, as the recent killings of Ahmaud Arbery and George Floyd have so hurtfully illustrated, we also know that our traipsing about city streets can be interpreted as threatening, and can lead to loss of life, even if law enforcement is involved.
And, that is what I want us... the SCM community... to consider.
I am concerned. The sheer numbers suggest an increased likelihood of situations similar to the delivery examples above. As we have seen, COVID-19 has caused more marketplace consumers to shift to online retail for food and product purchases, which means an increase in home deliveries, and an increased potential for delivery-related confrontations involving African American drivers. Furthermore, many online retailers and restaurants are turning to crowdsourced home-delivery service providers for last mile logistics, which means an increase in home deliveries made by drivers in “ordinary” vehicles wearing “ordinary” clothes. And, in the event that these ordinarily clothed delivery drivers are black men, there is unfortunate likelihood that we will see more reported repeats of the aforementioned delivery incidences. Perhaps with even worse outcomes, especially if not recorded.
SCM community, let’s take this seriously! Yes, the leading story of the day involves law enforcement in Minneapolis, but this emerging pattern of delivery-related issues suggests we also have problems in our SCM community. The sad truth is that, for black male delivery drivers, simply circling a neighborhood to find an address location, or opening a screen door in order to secure a package, comes with a real threat of being accused, accosted, arrested, or dare we even say...assaulted or killed. I ask that we not turn a deaf ear or blind eye to this issue, especially in light of the heightened tensions in our country. I wish I had a list of solutions to provide, but I don’t. I can only ask that we expand our thinking regarding driver safety. In addition to investing in things like personal protective equipment (PPE), advanced technologies, and updated delivery equipment as ways of enhancing driver safety, let’s also consider implementing processes and standards to combat the safety threats that biases and racial stereotypes pose for frontline delivery drivers—especially those that are African American and men.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."