Top 2024 Supply Chain Stories – A Year in Recap
Key Takeaways
- Labor Adaptation: UPS and the UAW’s efforts spotlighted the critical role of workforce strategy in navigating market shifts.
- Environmental Progress: Walmart achieved its sustainability milestone early, proving the alignment of environmental and economic goals.
- Cost Efficiency: Logistics costs dropped 11.2% in 2024, signaling a recalibration after previous spikes.
- Industry Consolidation: Major moves like DSV’s acquisition of DB Schenker reshaped the global logistics landscape.
- Policy Impact: The U.S. election outcome hints at forthcoming changes in tariffs, energy policies, and supply chain regulation.
- Data-Driven Advantage: Insights and technology remain crucial for building resilience and driving supply chain innovation in 2025.
As 2024 comes to a close, the supply chain industry reflects on a year of significant transformations, disruptions, and innovations. From labor market shifts and geopolitical tensions to technology breakthroughs, here’s a month-by-month breakdown of the most impactful supply chain stories of the year.
January: UPS Restructures for Efficiency
UPS announced plans to cut 12,000 jobs, aiming to save over $1 billion amid rising labor costs and softening parcel demand. Additionally, UPS confirmed the sale of its Coyote Logistics freight brokerage to RXO in June, reflecting its strategy to streamline operations.
February: U.S. Shipbuilding Decline and Walmart’s Green Milestone
A Wall Street Journal report highlighted the U.S.'s diminishing role in commercial shipbuilding, raising economic and geopolitical concerns. In contrast, Walmart celebrated cutting 1 billion tons of emissions from its supply chain, achieving its "Project Gigaton" goal six years early.
March: The Baltimore Bridge Collapse
A tragic accident occurred when a cargo ship struck the Francis Scott Key Bridge in Baltimore, leading to its collapse and causing significant supply chain disruptions. The port closure lasted until June, impacting auto imports and regional logistics.
April: UAW’s Unionization Victory at VW Plant
The United Auto Workers successfully unionized a Volkswagen plant in Tennessee, marking a historic win for organized labor in foreign-owned U.S. auto factories. However, a subsequent vote at Mercedes-Benz in Alabama was unsuccessful, reflecting ongoing labor challenges.
May: Gartner’s Top 25 Supply Chains
Schneider Electric topped Gartner’s annual list of leading supply chains for the second consecutive year, with Cisco, Colgate-Palmolive, Microsoft, and Johnson & Johnson rounding out the top five. Industry giants like Amazon and Apple were again classified as "Supply Chain Masters."
June: Logistics Costs Decline
The 2024 State of Logistics Report revealed a surprising 11.2% drop in U.S. business logistics costs, totaling $2.37 trillion. This decline followed a sharp 25.3% increase in 2022, signaling a recalibration in the market.
July: Formation of the Supply Chain Council
The new Supply Chain Council was established to advocate for policies enhancing supply chain resilience. This organization aims to bridge gaps between freight sectors and influence legislation for stronger supply chain networks.
August: Walmart Expands Fulfillment Services
Walmart announced plans to offer its logistics network as a service to other retailers, expanding beyond its Marketplace model. Walmart Fulfillment Services (WFS) is set to provide end-to-end solutions, from storage to delivery.
September: DSV Acquires DB Schenker
Danish logistics giant DSV announced a $15.9 billion acquisition of DB Schenker, significantly expanding its global footprint and challenging other major freight forwarders.
October: ILA and USMX Resolve Port Strike
The International Longshoremen’s Association and U.S. Maritime Alliance ended a two-day port strike, averting longer disruptions. However, unresolved issues like port automation remain contentious.
Turns out, even in 2025, this dynamic is still in play.
November: Policy Shifts with the 2024 U.S. Presidential Election
Donald Trump’s election win signaled potential shifts in supply chain policy, with expected changes to tariffs, energy policies, and regulations affecting electric vehicle adoption.
December: FedEx Plans LTL Spinoff
FedEx announced intentions to spin off its Freight division, the largest U.S. LTL carrier, into a separate publicly traded company by 2026. This move aims to enhance shareholder value and operational focus.
Preparing for 2025 with Trax Technologies
The events of 2024 highlight the importance of resilience, innovation, and agility in supply chain management. As companies brace for continued volatility and complex challenges in 2025, leveraging data-driven insights is more critical than ever.
Trax Technologies empowers global supply chain leaders with advanced data management and compliance solutions. By transforming freight data into actionable intelligence, Trax helps businesses optimize costs, ensure compliance, and drive strategic decision-making.
Unlock the full potential of your supply chain. Connect with Trax Technologies to turn your supply chain into a competitive advantage for 2025 and beyond.