June 19, 2020

If 2020 Were A Song…

It is no secret that logistics networks have had quite a bit of dissonance this year. The pandemic wreaked havoc with ocean and air transport from Asia, which caused ripples across all modes in the United States. When the virus began to accelerate in the U.S., and attempts to slow its progress created a national patchwork of government interventions that also slowed our supply chains, we experienced wildly arrhythmic market conditions. Consumer panic buying led to extreme surges in demand for certain products – and affiliated freight movement; while “non-essential” industry production tempos slowed dramatically.

Intermodal activities specifically saw on-again, off-again concerns about equipment quantities and placements. When you looked across the entirety of all networks, there were multiple occasions when freight transportation markets seemed headed for imminent collapse. If we described them in musical terms, there were plenty of times when they were off-key, off-tempo, and out of tune – and even times when it seemed like the music was going to stop all-together.

But that never happened – somehow our transportation systems kept going. The music kept playing.

These markets showed remarkable adaptability and agility. Groceries kept flowing. The systems and conveyances necessary to get the supplies to market kept moving. The song continued, and the melody evolved.

I don’t think anyone designed their logistics networks exactly the way they unfolded this year. There was no master score that every company was reading from. To be fair there never is. Supply and demand networks are all about improvisation. In jazz improv, the band decides on a minimal framework – key signatures, maybe a common tune around which their tune will evolve. This is the same as in every day logistics networks. Just like most jazz combos don’t have a conductor, neither do freight networks. Also like improv, creative – or perhaps competitive - tension - is what gives networks their adaptability. Each business is free to interpret their response to market conditions as they think best. We’ve seen businesses be creative over and over again this year. Adjusting, adapting, fitting their tunes and tempos in to match the market.

One final note on how the first half of this year looks like a jazz composition. One of the “rules” of improvising is being supportive of the other members of the combo – not competing, but listening to one another and taking turns “soloing” – offering your contribution to improve the quality of the performance. In normal market conditions, businesses – and associations – are all competing for attention and dollars. But I have seen some remarkable examples of collaborative improvisation recently. I’ll share just one.

In mid-March, ALAN began hosting a weekly call for our association partners. This is a group of 30 plus industry and professional associations who partner with ALAN. These associations represent the entire supply chain – from raw materials sourcing all the way through to retail. I’m grateful for IANA’s long term membership in this group, and for their ongoing partnership and support.

Every week from mid-March through the end of May, this group got together to discuss how they could support you – the logistics and supply chain community. They asked questions. They shared information. They shared lessons. They shared best practices. They were honest about failures. They bragged about successes. They offered up everything from the template for an “essential worker letter”, to facility cleaning protocols, to information on where to find hand sanitizer and personal protective equipment. They all took turns “soloing”, sharing their expertise and experiences, because they knew it would make the collective freight system better. They knew that the music would be a little more harmonious if they did.

I don’t know what the rest of the 2020 song sounds like. I fear some of the players in this combo we call the logistics community won’t make it through. My hope is that we’ll just continue to work towards making great music – together – listening, learning, and helping one another. If we do, the music probably won’t be perfect – but we can be assured it won’t stop.

Wishing you a wonderful week and some cool tunes.

Kathy

Kathy Fulton is Executive Director for the American Logistics Aid Network (ALAN). ALAN is a philanthropic, industry-wide organization that provides free logistics assistance to disaster relief organizations before, during and after catastrophic events. It does this by bringing the expertise and resources of the logistics industry together with compassionate organizations so that help can arrive sooner, and each relief dollar can be maximized. Over the years it has coordinated humanitarian supply chain services for natural disasters including hurricanes, wildfires, tornadoes and floods. To learn more visit www.alanaid.org.