Octave’s Mission: Building Systems That Don’t Break

At Hexagon’s recent global leadership event Hexagon LIVE, Mattias Stenberg, who was appointed in October 2024 to lead Octave, a strategic spinout from Hexagon, delivered a keynote that was both grounded and far-reaching. His talk offered a clear-eyed assessment of the state of critical infrastructure today, and what needs to change if we want our most essential systems to function reliably in the future.

Stenberg, who has been president of Hexagon’s Asset Lifecycle intelligence division since 2017, wasn’t there to announce a product line or unveil another dashboard. His message was more fundamental: we’ve inherited systems built to break. Octave’s mission is to build ones that don’t.

A New Kind of Intelligence for the Real World

Octave is not just another brand. It’s designed as an intelligence layer for the infrastructure that keeps society running. Think power grids, manufacturing systems, highways, water networks, emergency operations centers. The kind of systems where failure isn’t just inconvenient, it’s dangerous, costly, or even catastrophic.

At the core of Octave’s approach is a simple shift in mindset: stop reacting, start anticipating. Octave doesn’t aim to flood teams with more data or more disconnected tools. It aims to turn existing data into foresight, to embed real-time, contextual intelligence into the systems we rely on every day.

The name “Octave” itself is no accident. Inspired by music, it reflects a higher level of coordination and elevation, not just making noise, but orchestrating decisions. In practice, that means integrating AI directly into physical systems so they can detect issues, adapt, and respond long before human operators are even aware a problem is coming.

The Problem: Everything Breaks

Stenberg talked directly – “Things break,” he said, invoking the second law of thermodynamics with a hint of humor.

He pointed out examples we all recognize from the news:

• The Francis Scott Key Bridge collapse, a structural failure that could have been prevented with early detection.
• The Deepwater Horizon disaster, caused by system blind spots and poor integration between safety layers.

He pointed out that in each case, the data existed. The systems failed because they weren’t connected in the right way and lacked the intelligence to interpret early signals.

Octave’s Vision: Failure Is Not Inevitable

Too many organizations accept breakdowns as part of doing business. Delays, downtime, asset failure, they’ve been normalized. Octave’s entire premise is to challenge that mindset.

If systems can sense changes in their environment, process those signals intelligently, and act on them in time, then many failures can be avoided. But that level of performance requires embedded, context-aware intelligence, not generic AI models running in a separate system. Octave’s agents aren’t passive tools waiting for prompts. They’re active participants in system behavior.

Already, Hexagon has started deploying this approach across sectors, from manufacturing and logistics to public safety and energy. The early returns, he stated, are promising: less downtime, better coordination, and more resilient performance.

The Digital Transformation Disconnect

To underline the need for a new approach, Stenberg shared data from a recent C-suite survey conducted by Hexagon’s Asset Lifecycle Intelligence division,:

• Only 1 in 5 companies say they are realizing the full value of their digital transformation investments.
• 76% report using more tools and dashboards than ever, but feel less aligned and less in control.
• One executive summed it up: “More dashboards. More complexity. Less actual visibility.”

This reflects a deeper truth. Digital transformation alone doesn’t guarantee better performance. In fact, if not managed carefully, it can add noise, create silos, and obscure decision-making.

What Octave is offering is a reset: cut the clutter, connect what matters, and turn data into decisions that move the needle.

AI: Less Hype, More Usefulness

Stenberg then discussed the current AI hype cycle.

Yes, AI holds enormous potential, but most AI systems today are untrained, detached from operations, and built in isolation. They’re promising demos in a lab, not solutions in the field.

Octave takes the opposite path. Its AI agents are trained for specific environments, tied into operational systems, and continuously learning. These aren’t showpieces, they’re in the loop, helping machines and humans respond to signals in real time.

The Mirror World: Not Just a Twin, But a Partner

The term “digital twin” has been used in nearly every industry over the past few years. But as Stenberg pointed out, many of these twins are little more than static visualizations, nice to look at, but lacking predictive value.

Octave, Stenberg said, will be redefining the concept. In its vision, the Mirror World is a living, learning model of a physical system, constantly updated, deeply embedded, and able to act. If your digital twin can’t help you see trouble coming, it’s just a digital museum.

The goal is to spot patterns early, detect small signals before they become big problems, and support decisions that prevent, not just mitigate, failure.

Voices from the Field: What Must Not Break

Stenberg’s keynote also featured a panel of customers speaking directly about the pressures they face. Each one brought a unique perspective, but all centered on resilience and visibility.

Donald Lhoest (Carmuese): Global logistics operations require consistent, trustworthy intelligence. When teams are remote and distributed, “data needs to empower, not isolate, them.”

Colonel Mark Shelley (Lee County Sheriff’s Office): “Public safety depends on integrated, real-time intelligence. There’s no margin for error.”

Wade McNabb (Lixil): Factory downtime is a major risk. But human error is just as dangerous. “We need better training systems, and better insight into how our customers actually use our products.”

Joe Bonnet (Worley): “We run 10,000 projects at once. Complexity itself is the problem. If we can eliminate failure points, we can focus on innovation.”

Proof in Practice: The Öresund Bridge

To bring the message home, Stenberg closed with a case study:

The Öresund Bridge, connecting Sweden and Denmark, is equipped with a real-time digital twin. The system detected subtle vibration patterns, signals no human would have caught on their own.

Engineers investigated and discovered microcracks forming. Intervening early prevented what could have been a major infrastructure failure. That’s not theory. That’s the Mirror World in action.

Final Message: Time to Rethink What We Accept

Stenberg’s final words were a challenge to the industry.

“We’ve inherited systems that were built to break. Octave’s job is to build systems that adapt, and don’t fail silently.”

It is not about layering more dashboards or adding complexity. It’s about designing smarter from the start, systems that can think, respond, and evolve.

The post Stop Reacting, Start Anticipating: Hexagon’s Octave Vision for a Smarter and More Resilient Industrial and Commercial Infrastructure appeared first on Logistics Viewpoints.

In 2025, two ownership transition strategies are taking center stage in the manufacturing and supply chain sectors: strategic mergers and acquisitions (M&A) and employee stock ownership plans (ESOPs). While M&A is a vehicle for growth, it’s equally driven by founder-owner succession, generational transitions, and liquidity needs. At the same time, ESOPs are gaining momentum as a compelling alternative for owners seeking to preserve legacy while rewarding employees.

M&A: Supply Chain Resilience Drives Deal Activity

Global M&A activity in the manufacturing sector rose 5% in 2024, reaching $160 billion in total deal value. But beneath the headline numbers is a notable shift: more business owners are turning to M&A not to expand, but to exit. Private equity firms and strategic buyers are actively acquiring mid-sized, founder-led companies with strong customer relationships, operational know-how, and long-standing reputations in their regions.

In the supply chain and industrial services sectors, succession planning is now one of the top drivers of M&A activity. Many founders are ready to retire but face limited internal options. For these owners, a sale to a private buyer or PE-backed platform offers liquidity but often raises questions around keeping the core team and brand intact.

PE groups are fueling this trend—accounting for nearly 60% of all supply chain transactions in late 2024. Many are pursuing buy-and-build strategies and are eager to acquire specialized, profitable operators in logistics, distribution, contract manufacturing, and related segments.

ESOPs: Preserving Legacy While Enhancing Performance

ESOPs are becoming increasingly popular alternatives to traditional M&A, especially in the manufacturing and logistics sectors—where employee ownership is most prevalent. In fact, manufacturing accounts for 21% of all ESOP companies and holds 42% of the total assets among ESOP-owned firms, making it the leading industry for this structure.

For many owners, ESOPs offer a unique path: a tax-efficient sale that rewards employees, preserves company culture, and maintains operational continuity. Legislation like the proposed Employee Ownership Fairness Act of 2025 could further expand access by increasing contribution limits and simplifying compliance.

ESOP-owned companies are often more resilient, with lower turnover, stronger employee engagement, and better long-term performance—particularly valuable in industries facing labor shortages and margin pressure.

Where the Strategies Meet: Hybrid Approaches Are Emerging

An emerging trend is the combination of ESOPs and M&A. Some business owners opt to sell a minority stake through an ESOP while simultaneously bringing on outside capital or pursuing strategic acquisitions. This blended approach can offer liquidity, talent retention, and growth capital—all without ceding full control.

In both cases, the key is planning. Owners who wait until they’re ready to retire may miss out on the most favorable terms. Whether selling to a third party or transitioning ownership internally, a proactive process—backed by valuation expertise, tax planning, and strategic advice—can significantly enhance outcomes.

Ownership Transitions Are Shaping the Industry’s Future

The logistics and manufacturing sectors are entering a new era—one defined not just by technological transformation, but by ownership transition. As more founders consider stepping back, the decisions they make today will define their company’s future.

ESOPs, often considered niche, are a viable solution for founders who value continuity and culture. And in some cases, the best path may involve elements of both.

For business owners in the supply chain ecosystem, the time to evaluate exit options is before you need them. Whether through sale, succession, or employee ownership, the most successful transitions are those that are intentional, informed, and aligned with long-term goals.

Planning For a Thoughtful Transition

Ownership transitions—whether through a third-party sale, ESOP, or a hybrid approach—are complex decisions with long-term implications for both the owner and the business. In today’s environment, having a qualified advisor can make a meaningful difference in how those decisions are structured and executed.

If you’re considering a transition, it’s worth starting the conversation early. The right advisory team can help you evaluate your options objectively, navigate the nuances, and ensure the strategy you choose aligns with your long-term goals—for your business, your legacy, and your people.

By Robert Reavis, Director, ButcherJoseph & Co.

As a Director at ButcherJoseph & Co., Robert has advised a diverse group of middle market companies on mergers and acquisitions, capital raising, and strategic advisory assignments. Robert specializes in complex recapitalizations, capital markets activities, and real estate related transactions. Robert began his investment banking career at Société Générale, working in Paris for the consumer, retail, and luxury M&A group. His investment banking experience includes cross-border M&A advisory engagements for publicly listed and privately held companies across a broad range of industries. Robert earned a Bachelor of Arts with honors in economics and international studies from the University of Chicago as well as an international diploma from Institut d’Études Politiques de Paris (“SciencesPo”).

The post How Traditional M&A and ESOPs Are Reshaping The Manufacturing and Supply Chain Industry appeared first on Logistics Viewpoints.

This week’s headlines reveal a logistics industry caught between two worlds: one still hampered by legacy systems and regulatory bottlenecks, and another rapidly evolving into a landscape defined by real-time orchestration, intelligent automation, and hardened digital trust.

The transformation begins at the warehouse. As outlined in “Eight Capabilities Shaping the Next Generation of WMS”, modern Warehouse Management Systems (WMS) are no longer just inventory trackers—they’re becoming control towers. The next-gen WMS incorporates AI-driven optimization, no-code customization, and unified visibility across networks. Crucially, they now orchestrate humans and machines alike, bridging the growing automation-labor divide.

But inside the distribution center is just the start. “The Data-Driven Supply Chain: AI, Cybersecurity & Real-Time Monitoring” dives into how AI is reshaping entire ecosystems—from predictive replenishment to anomaly detection. Exception management, forward-deployed fulfillment, and dynamic inventory allocation are giving agile firms an edge. Still, siloed data and legacy ERP platforms limit many organizations from realizing AI’s full potential.

Cybersecurity and data governance, meanwhile, are no longer optional. With recent breaches still fresh in memory, logistics providers are deploying Zero Trust frameworks and encrypted APIs to secure their growing network of digital interfaces. A single exposed API could compromise everything from customs clearance to asset tracking.

Tariffs, however, are now the unexpected disruptors driving technological urgency. In “Tariffs Are the New Normal: Boardrooms Are Finally Demanding a Pivot to Real-Time Supply Chain Orchestration”, Kinaxis’ Mark Morgan explains how tariffs have become a constant, catalyzing a shift from batch planning to real-time orchestration. Boards are demanding resilience—not as a buzzword, but as a line-item performance metric. Simulation tools powered by AI now model hundreds of trade and sourcing scenarios in minutes, helping firms proactively dodge margin erosion. Speed isn’t a luxury anymore—it’s a boardroom mandate.

But while AI gives, policy takes. A sobering analysis in “The Policy Paradox: How US Tariffs and Tax Credits Risk Inflating Power Costs and Delaying the Energy Transition” reveals a self-inflicted dilemma: U.S. trade policy is raising the costs of batteries and renewables just as clean energy is needed to support exploding power demands from data centers and EVs. The tools to decarbonize are here—but we’re making them too expensive to deploy.

Amid all this uncertainty, one technology is quietly maturing: blockchain. In “Blockchain for Transparent and Secure Supply Chains: 2025 Update”, real-world use cases from Renault, Home Depot, and IBM show how blockchain is moving from theory to infrastructure. It’s reducing counterfeits, ensuring provenance, and delivering trust in environments where compliance and traceability are non-negotiable. But adoption still requires interoperability, governance, and mindset change.

Finally, “Smart Packaging & IoT Shipment Monitoring: What’s Working and What’s Not” shows how IoT sensors are unlocking real-time condition monitoring in high-risk shipments—pharma, electronics, and luxury goods. But the real challenge? Turning that data into action. Without deep integration into systems like TMS or ERPs, dashboards remain decorative instead of decisive.

In sum: The logistics leaders of 2025 aren’t just digitizing—they’re orchestrating. And the real winners? Those who turn disruption into an advantage before it even hits.

The post Logistics Viewpoints Weekly News: From Reactive to Real-Time – Supply Chains Rewrite the Rules appeared first on Logistics Viewpoints.

Over the past decade, Warehouse Management Systems (WMS) have evolved from simple systems of record into the operational nerve center of modern distribution. What was once primarily used for inventory tracking and order execution is now expected to support real-time intelligence, automation, and end-to-end orchestration across people, processes, and machines.

As businesses face increased pressure to fulfill faster, adapt to labor constraints, and integrate with an ever-growing ecosystem of technologies, WMS platforms must deliver far more than core capabilities. They must be intelligent, extensible, and built to support complex, multi-channel fulfillment environments.

In this article, I’ll explore the most important functional capabilities shaping the next generation of WMS—and what to look for when evaluating solutions for a future-ready warehouse.

1. No-Code/Low-Code Customization

In dynamic warehouse environments, waiting weeks or months for IT to implement changes is no longer viable. That’s why modern WMS platforms must support no-code and low-code configurability—enabling users to create or adjust screens, workflows, alerts, and advanced business rules without custom development.

This reduces the cost and time associated with change while empowering operations and IT teams to respond to evolving business requirements—like adding the fulfillment of a new sales channel or reconfiguring pick workflow—on the fly.

2. Cloud-Native, Security-First Deployment

Cloud computing has become the backbone of scalability, but not all “cloud” solutions are equal. The next-gen WMS must be built natively for the cloud, with support for microservices, elastic scaling, and robust APIs.

Just as important is security. With rising threats to supply chain infrastructure, features like multi-factor authentication, data encryption, and role-based access are table stakes—not add-ons.

3. Automation-Oriented Architecture

As warehouses embrace AMRs, conveyor networks, print-and-apply systems, and goods-to-person technologies, WMS platforms must move beyond simple integration—they must orchestrate automation. This means native support for real-time task allocation across machines and people to ensure fluid execution.

Automation doesn’t succeed in a silo. The WMS must be built to scale with MHE (Material Handling Equipment), enabling seamless upgrades and continuous improvement without major overhauls.

4. Multi-Agent Task Orchestration

Today’s warehouses rely on a blend of human labor, robots, and decision engines. A next-gen WMS must act as a multi-agent control tower, intelligently managing the handoff between these agents to avoid bottlenecks and optimize throughput.

This goes beyond task interleaving—it’s about having a work or task assignment engine that understands dependencies, context, and timing, dynamically adjusting work allocation across people, bots, and systems in real time.

5. Advanced Labor Management Built Into the Core System

Labor isn’t just a cost center—it’s a differentiator. That’s why WMS platforms should include embedded labor management capabilities, including:

• Dynamic task prioritization
• Real-time performance tracking
• Gamification and productivity dashboards
• Support for engineered labor standards (ELS)

In the age of chronic labor shortages, workforce visibility is mission-critical—and it needs to live inside your WMS, not in a separate bolt-on system.

6. AI-Driven Insights and Predictive Intelligence

Artificial intelligence and machine learning are no longer aspirational—they’re practical tools for increasing warehouse agility. Forward-thinking WMS solutions now include embedded AI to:

• Optimize pick paths based on live warehouse conditions
• Predict labor shortfalls and suggest preemptive scheduling
• Detect anomalies in cycle counts, replenishment patterns, or carrier delays

The WMS should help you think ahead, not just report what already happened.

7. Unified Visibility Across Networks

Supply chain resilience hinges on transparency. A modern WMS should provide multi-node inventory visibility, linking DCs, pop-up hubs, returns centers, and third-party logistics (3PL) sites in a single view.

This level of transparency allows for dynamic order routing, accurate ETAs, and synchronized execution across disparate sites—all of which are essential for omnichannel fulfillment and disaster preparedness.

8. Seamless Digital Integration Across the Supply Chain

In 2025, no system can operate in isolation. A truly modern WMS must be able to connect across a digital ecosystem—Order Management Systems (OMS), Transportation Management Systems (TMS), ERP platforms, customer portals, and e-commerce platforms—with minimal friction.

Support for APIs, standardized EDI transactions, and event-based notifications ensure that your WMS doesn’t just execute—it collaborates.

What This Means for WMS Buyers

Understanding these capabilities isn’t just useful—it’s essential for selecting a system that takes you into the future. As the expectations placed on warehouse operations grow, buyers must look beyond traditional checklists and dig into how a WMS is built, how it scales, and how it enables both automation and agility.

Here are eight questions to ask WMS vendors that map directly to the capabilities shaping the future of warehouse management:

• Can business users configure workflows, rules, and screens without custom development or vendor support?
• Is the platform built natively for the cloud, and what enterprise-grade security features are included by default?
• Is the WMS architecture designed for real-time automation control—and does it support protocols for device communication?
• How does the WMS assign, reassign, and balance tasks between human workers and robots in real time?
• Does labor management live within the WMS—and does it support real-time tracking, engineered standards, and productivity analytics?
• What role does AI play in daily operations—and how is it used to predict, optimize, or prevent disruptions?
• Can the WMS provide a real-time, unified view of inventory across multiple locations, including external partners and 3PLs?
• How easily can the WMS integrate with external systems like ERP, TMS, OMS, and supplier platforms?

Asking these questions upfront will help you separate legacy platforms from modern solutions—and ensure you’re choosing a WMS that’s built not just for today’s warehouse, but for what’s coming next.

Want to learn more? Check out our new white paper, How WMS Is Powering the Next Generation of Smart Warehousing.

Amit Levy
As Executive Vice President of Sales & Strategy at Made4net, Amit Levy leads the development and execution of the company’s sales strategy, oversees partnerships, and drives growth initiatives. With over 25 years of experience in sales and implementations of supply chain execution software across global markets, Amit brings a wealth of expertise in delivering innovative solutions to optimize supply chain performance.

Made4net
With over 800 customers in 30 countries, Made4net is a global leader in cloud-based supply chain execution and warehouse management solutions. Designed for organizations of all sizes, their best-in-class platforms enhance the speed, efficiency, and flexibility of supply chain operations, empowering businesses to meet their unique challenges and drive growth. To learn more, visit Made4net.com.

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For years, supply chain professionals have talked about visibility, resilience, and efficiency. The tools we have used, ERP systems, spreadsheets, and siloed databases, have served us well, however as complexity increases, and the margin for error narrows, there has been a growing recognition that patchwork systems are no longer enough.

What is needed is a practical, scalable way to unify supply chain data across systems, make it useful in real time, and apply intelligence, whether from algorithms, machine learning models, or a trained human eye, to act on it quickly. That is exactly the direction taken by InterSystems and their customers, as detailed at InterSystems READY 2025 in Orlando, Florida.

Data Fabric Studio: One Place to Start

At the center of the discussions was the InterSystems Data Fabric Studio, a cloud-based system designed to integrate and organize data from multiple sources. Not just for IT departments or data scientists, but also for the people who manage daily operations, procurement leads, planners, and inventory analysts.

This product connects directly to systems like Snowflake, Kafka, AWS S3, and relational databases. It allows users to build and automate workflows (called “recipes”) that clean, reconcile, and move data into consistent formats, without having to code from scratch.

In short, it helps turn fragmented operational data into something trustworthy, structured, and ready for use across departments.

Use Case: Supplier Data Integration Across ERPs

One session focused on a familiar problem: integrating supplier data spread across two disconnected ERP systems. Each system used different IDs for the same suppliers, different formats for purchase orders, and different rules for reconciliation.

Using Data Fabric Studio, the team:

• Mapped and validated key identifiers (like DUNS numbers) across systems.
• Flagged inconsistencies in supplier names and standardized the records.
• Created lookup tables and transformation rules to automate future loads.
• Set a schedule to refresh this data daily, no manual uploads are needed.

The takeaway: fewer errors, faster onboarding, and one consistent view of supplier performance.

Forecasting, Not Just Reporting

Several sessions went far beyond integration, since once data is unified, it becomes possible to do more with it, like improve forecasts or detect early signs of trouble.

One method shown was to create snapshots of data tables at regular intervals, such as open purchase orders at the start of each week or inventory by location at shift change. These snapshots could then feed planning tools without requiring repeated rework or new queries every time someone asks for an update.

It is not classical predictive AI, but it is the kind of practical structure that supports accurate forecasting and decision-making.

AI Integration

Many AI projects fail not because of the models themselves, but because the data going into them is disorganized or outdated. InterSystems’ position, with which ARC strongly agrees is that data must be AI-ready, structured, validated, and governed, before AI can be reliably applied.

For those who are ready, Data Fabric Studio includes native support for vector search and retrieval-augmented generation (RAG). This means it can:

• Embed semantic search into procurement or customer service workflows.
• Feed large language models with accurate, up-to-date information drawn from verified data.
• Support natural language interfaces, including assistants that generate SQL or explain trends.

One example came from Agimero, a European firm that used vector search to streamline parts procurement. They built a semantic layer into their sourcing tool, which helped reduce turnaround time and freed up staff. Time to deploy? Less than a week!

Lessons from Healthcare That Apply Here

A keynote from the AI for Healthcare track may seem unrelated at first, but the core lesson was broadly applicable: data doesn’t have to be clinical to be useful in diagnosis. In one case, the team used shopping data to detect early signs of ovarian cancer based on changes in food purchases.

Now let’s translate that into supply chain language.

What if sudden shifts in supplier invoicing patterns indicated financial stress? What if internal communications flagged increasing lead times before they hit the dashboard? The tools now exist to explore those questions, not just log them.

The point is it is time to examine where such signals might live in your own systems.

A Modular Approach That Does Not Lock You In

Another strength of the Data Fabric Studio is its modular design. You can start with basic data ingestion and cleaning, then layer on adaptive analytics, natural language assistants, or domain-specific modules (e.g., for supply chain, finance, or healthcare) when and if they make sense.

Unlike some vendor ecosystems, this one doesn’t insist you move everything into a new system. It works alongside existing data warehouses, ERP tools, and planning platforms. That flexibility matters, especially for organizations that cannot afford multi-year migrations.

Vector Search and RAG: Where It Fits

The integrated vector search capabilities shown during the sessions were grounded, not speculative. One demonstration showed how a company used it to improve search across 400 million records of biological data. The same tools were used in supply chain use cases, surfacing similar suppliers, matching part numbers across catalogues, or enabling text-based queries across historical documents.

These systems don’t replace human judgment, but they make pattern recognition faster, and reduce the time spent digging through dashboards and reports to get to the relevant piece.

Scalability Is not Optional

For companies working on a global scale, performance is key. Sessions with Epic (the healthcare software company behind MyChart) showed how InterSystems IRIS, the underlying engine behind Data Fabric Studio, supports hundreds of millions of real-time transactions.

Why mention this in a supply chain context? Because once data becomes foundational to operations, slow queries and manual workarounds no longer are enough. The infrastructure must keep pace.

InterSystems have built their offerings with that in mind, whether for healthcare, finance, or logistics.

What stood out across all the sessions was not hype, there was a clear theme:

• Organize your data first.
• Reconcile it across systems.
• Use automation to reduce repeat work.
• Add intelligence gradually, where it supports decisions.
• Prioritize infrastructure that can scale.

If you have worked in supply chain for any length of time, that list is no surprise, however seeing those steps pulled together in one single system, accessible to both developers and business users, is important and unique.

Digital Transformation is about doing what works, better, faster, and with less friction, and that is exactly what was seen at InterSystems READY 2025.

The post InterSystems READY 2025 – Modern Supply Chains, Practical Data Strategy, and Tools That Work appeared first on Logistics Viewpoints.

Supply chains do not just move products, they move promises. Promises of origin, safety, compliance, sustainability. And in 2025, keeping those promises has never been harder. Counterfeit goods still fill markets. Paper trails remain vulnerable. Disparate systems fail to communicate. Trust, the currency of global trade, is stretched thin.

Blockchain, despite the early hype and hesitation, is proving to be the foundational architecture that this trust-deficient world demands.

The Trust Deficit at the Core

A modern supply chain spans continents and cultures. Multitudes of suppliers, each using different data formats and systems, must somehow coordinate seamlessly. Yet in too many cases, a manufacturer still cannot verify where their materials originated. A retailer depends on vulnerable documentation. Regulators face opaque claims around sustainability, emissions, and labor practices.

This is not a technology problem. It is a data trust problem.

Blockchain addresses that problem by design. Instead of relying on reconciliations between siloed systems, it offers a single, tamper-resistant ledger. Every authorized party, supplier, auditor, regulator, buyer, can read from and write to the same shared source of truth.

What Blockchain Really Does

Strip away the buzzwords, and blockchain is a decentralized, immutable database. Each transaction is time-stamped, cryptographically secured, and permanently linked to those before it. Once recorded, it cannot be altered without network-wide consensus.

This delivers three things that every supply chain needs:

• Provenance: A verifiable chain of custody from raw material to finished good.
• Smart contracts: Automated enforcement of terms, from payment triggers to regulatory compliance.
• Auditability: A permanent, tamper-proof log accessible to auditors, customers, and internal teams alike.

Real-World Impact

Blockchain is not an academic exercise, it’s already in use by industry leaders:

• Renault Group moved its entire supply chain documentation process onto blockchain. The result? Real-time compliance and document sharing across its automotive ecosystem.
• The Home Depot adopted blockchain to enhance supplier visibility, reduce disputes, and shorten issue resolution timelines.
• Valencia Port Foundation partnered with IBM to integrate blockchain into its port logistics, enabling secure, trusted data exchange among shippers, customs, and terminal operators.
• A pharmaceutical pilot involving KPMG, Merck, IBM, and Walmart demonstrated how blockchain can reduce drug traceability from 16 weeks to just 2 seconds, a breakthrough in counterfeit prevention.
• Vertrax Blockchain, operating in the energy sector, enabled real-time logistics traceability during high-stress demand spikes brought on by severe weather events.
• IBM Food Trust continues expanding, allowing retailers to trace fresh produce from farm to shelf, a vital tool in managing food safety, recalls, and expiry concerns.

A Cybersecurity Bonus

The decentralized nature of blockchain makes it inherently resilient. There’s no single point of failure. Every transaction is encrypted and linked, rendering unauthorized changes virtually impossible.

When integrated with IoT and digital twins, blockchain becomes the backbone of a secure “digital thread”, maintaining integrity from the origin of raw materials to the final point of sale. Predictive analytics layered on top allow for real-time anomaly detection, flagging issues before they become crises.

The Integration Challenge

Blockchain is not a silver bullet. It is not plug-and-play. It requires:

• Shared governance across ecosystems.
• Standardized data models between trading partners.
• Tight integration with core systems like ERP, PLM, and SCM.
• Significant change management, especially in training and stakeholder buy-in.

Technology alone will not deliver ROI. Blockchain demands a shift in how supply chains view data: not as proprietary control points, but as shared assets that drive collective value.

Why It Matters More Than Ever

Three forces make blockchain’s role non-negotiable in 2025:

1. ESG and Regulatory Demands: Governments now require traceability, not just for carbon, but for labor practices, material sourcing, and ethical compliance.
2. Consumer Expectations: The modern buyer wants transparency. QR codes should answer where, how, and by whom a product was made.
3. Resilience in a Disrupted World: Geopolitical risks, climate volatility, and cyber threats make real-time, trustworthy data a survival requirement.

Final Thoughts

Blockchain is no longer a science experiment, it is an operational pillar. It transforms integrity from a virtue into a verifiable asset. For enterprises navigating uncertainty, it offers more than security. It offers clarity.

In a world where trust must be earned with every transaction, blockchain does not just support the supply chain. It secures it.

The post Blockchain for Transparent and Secure Supply Chains, 2025 Update appeared first on Logistics Viewpoints.

The United States stands at a critical juncture, confronting a surge in electricity demand driven by the rapid expansion of data centers and the broader electrification of its economy. This demand spike coincides with a worldwide imperative to transition toward cleaner energy sources. However, a complex and at times contradictory web of federal policies is creating significant headwinds. While the Inflation Reduction Act (IRA) offers powerful incentives to build a domestic clean energy supply chain, a concurrent strategy of imposing steep tariffs on imported components, particularly from China, is creating a policy paradox. This report will analyze how these conflicting measures, intended to foster long-term industrial strength, are raising the immediate cost of the cheapest sources of new power—solar, wind, and batteries—thereby threatening to increase electricity prices and delay the nation’s ability to meet the urgent power needs of data centers and a newly electrified society.

The Conflicting Signals of US Energy Policy

The current U.S. approach to the energy sector is characterized by two powerful but opposing policy levers: punitive tariffs and conditional incentives. This creates a volatile and uncertain environment for developers of renewable energy and storage projects.

The Tariff Wall Against Clean Energy Components

The U.S. has enacted a series of escalating tariffs, primarily under Section 301 of the Trade Act of 1974, targeting a wide range of Chinese goods essential for the energy transition. Lithium-ion batteries, a cornerstone technology for both electric vehicles (EVs) and grid stability, have been a primary focus. In 2024, the tariff on Chinese EV lithium-ion batteries rose from 7.5% to 25%. For non-EV batteries, such as those used in grid-scale storage systems, tariffs are also slated to increase to 25% by 2026. These duties are compounded by additional levies, leading to combined tariff rates on grid batteries of approximately 65%, with projections they could exceed 80%.

The immediate consequence of this tariff wall is a sharp increase in the price of these components in the U.S. market. This directly drives up the capital expenditures for renewable energy projects, complicating deal structures and introducing new financial risks. Because the U.S. battery energy storage system (BESS) industry is heavily reliant on Chinese imports, these tariffs have a particularly disruptive effect, leading to project delays and investment uncertainty.

The Inflation Reduction Act’s Conditional Incentives

In contrast to the punitive nature of tariffs, the 2022 Inflation Reduction Act (IRA) was designed to catalyze a domestic clean energy manufacturing renaissance through substantial subsidies. The Section 45X Advanced Manufacturing Production Credit, for instance, offers lucrative tax credits for domestically produced battery components, including $35 per kilowatt-hour (kWh) for battery cells and $10/kWh for battery modules.

However, these powerful incentives come with significant strings attached. To qualify for consumer tax credits like the $7,500 Clean Vehicle Credit, products must meet stringent sourcing requirements for battery components and critical minerals. Crucially, the IRA includes a “Foreign Entity of Concern” (FEOC) exclusion rule, which, starting in 2024, disqualifies any vehicle containing battery components from entities in China, Russia, Iran, or North Korea from receiving the credit.

This creates a policy paradox. The federal government is simultaneously subsidizing the clean energy industry while taxing its most critical and cost-effective inputs. For a project developer, this means navigating a landscape where the benefits of IRA credits may be partially or wholly negated by the increased costs imposed by tariffs. This dynamic forces companies to re-evaluate their supply chains, seek alternative suppliers that are often more expensive or have limited capacity, and contend with significant investment uncertainty.

The Direct Impact on Clean Power Costs

While the global trend for clean energy technologies has been one of rapidly falling costs, U.S. policy is creating a notable divergence, artificially inflating the price of the very technologies needed to decarbonize the power grid affordably.

The Rising Cost of Grid-Scale Battery Storage

Grid-scale battery storage is essential for a modern, reliable power grid. It solves the intermittency problem of wind and solar power by storing excess energy and dispatching it when needed, thereby enhancing grid stability. Lithium-ion batteries, particularly the Lithium Iron Phosphate (LFP) chemistry, have become the preferred choice for these applications due to their high efficiency and the fact that costs have declined 80-90% over th past ten years. .

However, U.S. tariffs are directly countering this deflationary trend. With the U.S. power industry facing an average tariff rate of 38% on electrical equipment, the cost of deploying BESS has risen significantly, deterring investment. This is especially damaging given that the cost of battery packs, which had been falling dramatically for over a decade, is a primary driver of the economic viability of storage projects. While technological advancements continue to push global battery prices down, U.S. trade policy is forcing domestic project costs in the opposite direction, slowing the deployment of this critical grid-balancing technology.

The Ripple Effect on Solar and Wind Projects

The cost pressures extend beyond batteries. Import tariffs are driving up capital expenditures for solar panels and wind turbines as well, complicating the economics of new renewable energy projects. Globally, wind and solar represent the cheapest sources of new electricity generation and are expected to provide 70-90% of all new power in the next 5 years. New grid power in the US was about 93% renewable in 2024. By artificially inflating their costs in the U.S., these policies blunt their competitive edge and slow the pace of their deployment. The result is a more expensive energy transition, where the cost savings that should be realized from adopting cheaper renewable sources are instead eroded by trade policy.

Consequences: Project Delays and Unmet Power Demand

The combination of higher costs and supply chain disruptions is creating a bottleneck in the deployment of new clean power resources. This bottleneck comes at the worst possible time, as new sources of electricity demand, particularly from data centers, are placing unprecedented strain on the nation’s grid. While current policies are pushing fossil power, no new coal plants will be built and the cost and schedule for new natural gas power plants has increased substantially with increased costs for steam and gas turbines and a shortage if engineering, procurement, and construction (EPC) manpower to build them.

The Data Center and Electrification Dilemma

The boom in artificial intelligence and cloud computing is fueling a massive build-out of data centers, which have immense and unrelenting power requirements. This, combined with the general electrification of transport and buildings, is creating a surge in new power demand that many utilities are struggling to meet. Clean energy, particularly solar-plus-storage projects, is the ideal solution to quickly power these new loads without increasing emissions. While recent government support for nuclear power is a longer-term option and while firms like Meta, Google, Amazon, and Microsoft have entered into alliances with new SMR and advanced reactor suppliers, new nuclear power will take a long time to get on-line and it is highly likely that new unproven reactors will have delays and cost increases.

However, U.S. policy is hindering this solution. The reliance of data centers on lithium-ion batteries for backup power and grid services means that tariffs are directly increasing their construction costs by mid-to-high single digits. More broadly, the delays and cost increases for utility-scale solar and battery projects make it harder for utilities to bring new, clean generation online in time to meet requests for new data center connections. This could force delays in the tech sector’s expansion or, perversely, lead to a greater reliance on fossil fuel “peaker” plants to meet the demand.

The impact on broader electrification is also significant. Tariffs on batteries and other components are contributing to a 10% or more increase in the price of EVs for American consumers, hindering the transition away from internal combustion engines. The complexity of the IRA’s sourcing rules further limits which vehicles qualify for consumer credits, acting as another drag on adoption.

Supply Chain Disruption and Canceled Projects

The strategic goal of reshoring the battery supply chain is a long-term endeavor. In the short-to-medium term, the primary effect of the current policy mix is disruption. Forced to seek alternatives to the dominant Chinese supply chain, U.S. companies face a market with a limited number of global suppliers and insufficient domestic capacity.

This disruption has tangible consequences. Between 2024 and 2025, canceled battery projects in the U.S. amounted to an estimated $9.5 billion, while new project announcements totaled only $1.175 billion. This investment chill, driven by cost uncertainty and supply chain instability, directly translates to a slower build-out of the manufacturing capacity and energy infrastructure needed for the transition.

Conclusion and Outlook

The United States is pursuing two parallel but conflicting policy goals: the rapid, affordable decarbonization of its economy and the strategic, long-term reshoring of its clean energy supply chain. While the latter is a valid national security and economic objective, the current strategy of combining high tariffs with complex, restrictive incentives is creating a policy paradox that jeopardizes the former.

By raising the cost of solar, wind, and battery storage, these policies are slowing the deployment of the cheapest and cleanest sources of new power. This threatens to inflate electricity prices for consumers and businesses and risks leaving the nation unable to cleanly and affordably meet the surging power demands of data centers and broader electrification. The ultimate success of this strategy will depend on how quickly a cost-competitive domestic supply chain can be established. In the interim, the U.S. faces a period of higher costs, project delays, and a potential slowing of its energy transition, highlighting the profound tension between the urgent need for clean energy deployment and the strategic desire for supply chain security.

The post The Policy Paradox: How US Tariffs and Tax Credits Risk Inflating Power Costs and Delaying the Energy Transition appeared first on Logistics Viewpoints.

This week in supply chain and logistics news began with the Trump administration imposing a 50% tariff on all U.S. imports of copper. Additionally, Trump ordered a Section 301 investigation into Brazil, which allows the U.S. to take action against countries that violate trade agreements. Infios and S&S Activewear were awarded the “Top Supply Chain Project Winner” for their collaboration on warehouse automation and robotics. Lastly, Mark Morgan, an executive at Kinaxis, discussed Supply Orchestration to mitigate the impacts of tariffs.

Here are the biggest stories of the week:

U.S. Places a 50% Tariff on Copper Imports 

The U.S. will impose a 50% tariff on copper imports starting August 1, 2025, following a national security assessment. President Donald Trump announced the decision, which follows a Section 232 investigation into copper imports. This investigation assessed domestic demand, production, and the impact of imports on national security. The new tariffs are expected to increase costs for imported metals, contributing to cost-push inflation. Major copper exporters to the U.S. include Chile and Canada, which together supplied over $10 billion worth of copper in 2024. This move mirrors previous tariffs on steel imports under similar investigations.

Trump Orders Section 301 Investigation on Brazil 

President Donald Trump announced a Section 301 investigation into Brazil due to its digital trade policies, which allegedly restrict U.S.-based social media platforms. He also declared a 50% tariff on Brazilian imports starting August 1, 2025. This move is part of a broader strategy involving reciprocal tariffs on multiple countries, including Japan and South Korea. Brazil, previously facing a 10% baseline tariff, will now see increased tariffs, especially on steel imports. Additionally, Trump threatened a 10% tariff on countries aligned with BRICS. A Section 301 investigation is a tool used by the United States Trade Representative (USTR) to address unfair trade practices by foreign countries. Authorized under the Trade Act of 1974, it allows the U.S. to take action, including imposing tariffs, against countries that violate trade agreements or engage in unjustified, unreasonable, or discriminatory practices that burden U.S. commerce. 

Honda Launches Quadricycle-based Urban Cargo Delivery Business 

Honda has launched a new business unit called **Fastport**, which aims to revolutionize last-mile delivery in urban areas using electric quadricycles. These modular vehicles, designed for bike lanes, will be produced in Ohio and feature swappable batteries, proximity sensors, and other safety features. Fastport’s “fleet-as-a-service” model includes not just the vehicles but also the entire support ecosystem, including maintenance and software. Honda is targeting parcel and food delivery markets in North America and Europe, with plans to collaborate with major logistics companies for pilot programs. This initiative is part of Honda’s broader strategy to reduce emissions and traffic congestion in cities.

Infios and S&S Activewear Named a 2025 “Top Supply Chain Project Winner”

S&S Activewear has revolutionized its supply chain by implementing Autonomous Mobile Robots (AMRs) and modernizing 200,000 square feet of warehouse space. This transformation has drastically reduced employee training time from 90 days to just 20 minutes and increased productivity fivefold, achieving 200 picks per hour without additional headcount. The innovative approach has also led to a 75% drop in employee turnover and a 275% increase in accuracy. These advancements earned S&S Activewear the 2025 “Top Supply Chain Projects” Award from Supply and Demand Chain Executive, showcasing their commitment to empowering employees and scaling operations through cutting-edge automation.

Tariffs Are the New Normal: Boardrooms are Finally Demanding a Pivot to Real-Time Supply Chain Orchestration

In today’s volatile environment, where disruptions like tariffs, labor strikes, and geopolitical instability are common, I recognize the critical need for real-time supply chain orchestration. By leveraging AI-powered orchestration platforms, I can make faster, more informed decisions by simulating scenarios and evaluating trade-offs in real time. This shift from reactive to proactive management helps me protect margins and maintain agility. I understand that resilience is now a boardroom imperative, and I am investing in AI to turn disruptions into competitive advantages.

Song of the week:

The post Supply Chain and Logistics News July 7th- 10th 2025 appeared first on Logistics Viewpoints.

When the latest wave of U.S. tariffs hit, some companies scrambled. Others had already pressure-tested their supply chain strategies for moments like this. Today, disruptions – whether from trade policy, labor strikes, extreme weather, or geopolitical instability – aren’t the exception. They’re the norm. That’s why real-time supply chain orchestration is no longer a nice-to-have. It’s a boardroom imperative.

Scenario modeling, running what-if simulations to stress-test sourcing, pricing, and inventory decisions, has become a cornerstone of supply chain strategy. Companies are under mounting pressure to protect margins and stay agile by making risk-informed decisions in real time. That pressure isn’t just coming from operations; it’s coming from the top. Boardrooms are raising the bar for resilience, wary of the next black swan event.

This mindset has been forged by years of shocks. The assumption of stability is gone, replaced by an expectation that companies can pivot quickly. Tariffs are just the latest in a string of disruptions, underscoring why businesses are shifting to dynamic, AI-enabled supply chains designed to anticipate, not just react. Orchestration – the real-time coordination of supply, logistics, and demand – is becoming the new standard. AI makes it possible

The Role of AI in Real-Time Orchestration

Operations teams have long struggled to make high-stakes decisions with delayed or incomplete data. What’s changing is the role of AI – not as a replacement for human planners, but as a force multiplier. Teams are moving away from static spreadsheets and toward systems that support continuous modeling and real-time scenario analysis.

AI enables faster, more confident decision-making. It helps evaluate trade-offs, simulate outcomes, and act before disruptions take a toll. In volatile environments, speed and precision aren’t luxuries, they’re requirements. That urgency isn’t theoretical—it’s showing up in earnings calls and market performance.

This shift is being driven, in part, by the financial weight of policy-driven shocks. In Q1 2025, 411 S&P 500 companies referenced tariffs in earnings calls, the highest in over a decade. Dollar Tree projected a 50% earnings drop. Ford estimated a $1.5 billion hit. Macy’s and Gap issued downward revisions. According to Accenture, companies miss out on $1.6 trillion in annual growth due to disruption vulnerability.

In this environment, monthly or quarterly planning cycles are too slow. A single policy shift can make suppliers unviable overnight. AI-powered orchestration platforms bridge this gap with responsive visibility into cost impacts, risk exposure, and sourcing alternatives.

The value of AI isn’t automation—it’s acceleration. It empowers planners to get ahead of change, not just absorb it.

Why Real-Time Orchestration Is Winning
Real-time orchestration flips the script. Leaders no longer wait for disruptions to impact performance, they can now simulate scenarios, evaluate trade-offs, and act before margin erosion sets in. Platforms like Maestro allow companies to model what-if cases in minutes, powering faster, more informed decisions across sourcing, pricing, and procurement.

As one supply chain executive put it: “We don’t see tariffs as a temporary challenge anymore; it’s just another variable to manage in real time.”

Accenture research shows that organizations with next-generation, AI-enabled supply chains are 23% more profitable than their industry peers. Lippert Components is a clear example. During the 2018 tariff wave, they leaned into orchestration to optimize costs and reroute shipments. That early investment gave them a head start in navigating today’s even more complex disruptions.

From First Steps to Boardroom Decisions
If you’re new to orchestration, the path forward is clear: get real-time visibility, start small with scenario modeling, and align your teams around decisions, not just dashboards. They transform firefighting into foresight, equipping your teams to respond with confidence no matter how volatile trade and regulatory conditions become.

Tariffs, labor shocks, and geopolitics aren’t going away. Forward-looking companies aren’t waiting for stability—they’re building systems to thrive in instability. Boards want more than dashboards. They want decisions: proactive, data-backed moves that protect profit and keep goods flowing.

That’s why budgets are shifting mid-year, moving beyond batch ERP extensions to real-time orchestration platforms.

The Bottom Line
Tariff disruption isn’t going away anytime soon. Using them as a catalyst to build resilience is strategic. And orchestration is the future.

In boardrooms today, resilience isn’t just a talking point, it’s a performance expectation. Orchestration is how companies will meet it.

Companies that invest in real-time visibility, scenario modeling, and agile execution aren’t just staying afloat, they’re turning disruption into competitive advantage.

by Mark Morgan, President of Commercial Operations, Kinaxis

Mark is a proven supply chain software executive who has scaled global commercial operations to well beyond a billion dollars in annual revenue, delivered double-digit SaaS increases within existing and new customers, and enabled hyper-growth through expanding partner ecosystems.

He has more than two decades of executive and sales leadership experience in supply chain, including leading the commercial operations for Coupa and Blue Yonder, where he also held the role of interim CEO.

Mark manages Kinaxis sales teams in North America, EMEA and APAC, the global go-to-market & strategic operations team, global customer care and business consulting.

Mark holds an MBA from University Detroit Mercy and a BBA in Materials and Logistics management from Michigan State University.

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Revolutionizing Supply Chains: S&S Activewear’s Award-Winning Fulfillment Strategy

In today’s fast-paced world, where same-day delivery and labor shortages are common challenges, speed, accuracy, and resilience are essential for supply chain success. S&S Activewear recognized the need to evolve its distribution network to stay ahead of the competition. By implementing Autonomous Mobile Robots (AMRs) and modernizing 200,000 square feet of warehouse space, they didn’t just automate—they redefined their entire fulfillment strategy. Onboarding new employees went from a 90-day – 6 6-month process down to a week. With the implementation of the AMRs, employees no longer have to learn how to drive a forklift, which greatly reduces training time. Employees used to spend almost 50% of their time driving and traveling to pick up items, which is now the robot’s job. Overnight, the robots are reorganizing the products by size and color, which improves efficiency and reduces mistakes.

Award-Winning Innovation

S&S Activewear’s bold approach has earned them the 2025 “Top Supply Chain Projects” Award from Supply and Demand Chain Executive. Submitted by their technology partner Infios, this award highlights how S&S is setting new standards in modern distribution center operations.

Cutting-Edge Automation

The project involved deploying a state-of-the-art AMR solution from Geekplus, powered by Infios, across four major U.S. distribution centers, with a fifth on the way. This transformation turned 200,000 square feet of a 700,000 square foot facility into a high-performance, automated fulfillment environment featuring:

• 350 AMRs
• 3,000 robotic racks
• 120,000 custom totes
• 24 robotic picking stations
• Dynamic slotting, pick-to-light guidance, and advanced decanting

All these elements are tightly integrated with their ERP system and designed for scalability.

Remarkable Achievements

S&S Activewear’s innovative approach has led to impressive results:

• 5x productivity boost: Increased from 40 to 200 picks per hour without adding headcount.
• 75% drop in employee turnover: Safer, smarter workflows that keep teams engaged.
• 275% increase in accuracy: Minimizing errors and protecting customer satisfaction.
• Training time cut from 90 days to 20 minutes: Onboarding during peak season is no longer a challenge.

Empowering People, Scaling Operations

S&S Activewear proves that warehouse robotics isn’t about replacing people—it’s about empowering them, scaling operations, and preparing for the future. If you’re ready to modernize your fulfillment, Infios can help you implement AMRs and robotics that deliver measurable results.

Watch More About The Project Here: 

Full Press Realease: Infios

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