Today’s Pickup: Most supply chain businesses believe they trail competitors in digital initiatives

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Good day,

The move to a digital supply chain is leaving many organizations behind, according to a new report from Fujitsu. The Digital Transformation PACT surveyed 1,625 business leaders globally and found that 84% say customers want them to be more digital but 71% believe they lag their competitors. Sixty-six percent expect to lose customers to competitors as a result.

The survey added that 46% of businesses have already started digital transformation projects and 86% are planning for digital disruption beyond the next year.

“Technology can be truly transformative, but making the most of digital requires more than the latest tools,” Duncan Tait, CEO, SEVP and head of Americas and EMEIA at Fujitsu, said. “While businesses today recognize the need to adopt and adapt to technology, there remain significant issues that are contributing to substantial rates of failure and high associated costs. To realize their digital vision, it’s crucial that businesses have the right skills, processes, partnerships and technology in place. With digital disruption rapidly changing the business landscape, businesses can’t afford to fail in their transformation.”

Did you know?

Cummins was the first company to offer a 100,000-mile warranty on an engine, coming in 1940.

Quotable:

“Minorities are being targeted, and demographers are advising the industry leaders to target minorities to provide solutions to solve the [shortage] issue. We’re making strides, but we’re not being creative. As an industry, we are waiting for someone else to ignite and initiate something.”

- Kevin Reid, CEO of the National Minority Truckers Association

In other news:

Celadon stops construction on new headquarters

Celadon Group has stopped construction on a planned $28M headquarters and will instead put the partially finished building up for sale. (Indianapolis Business Journal)

Trucking needs to look to immigrants

Trucking should focus on attracting more immigrants into the industry to help fill the driver shortage, say leading experts on minority hiring. (Arkansas Online)

Maryland gives initial okay to hyperloop tunnel

The Maryland Department of Transportation has given conditional approval to Elon Musk to build a hyperloop tunnel from Baltimore to Washington, D.C. (Delaware Online)

Drug failure rates soar

More workers in safety-sensitive jobs, which includes truck drivers, failed drug tests in 2016 than in 2015, according to Quest Diagnostics, with some categories up double digits. (Transport Topics)

More fleets raising driver pay

Fleets are continuing to raise driver pay as they look for ways to retain drivers in a tight job market. (Heavy Duty Trucking)

Final Thoughts

It’s probably not a coincidence that as more states legalize marijuana and the stigma associated with the drug falls, more workers are testing positive for pot. According to Quest Diagnostics, marijuana-positive drug tests for safety-sensitive workers (including truck drivers) increased 10% from 2015 to 2016 and are up 23% since 2012. The firm did not break out truck driver failure rates, but drivers need to remember that while marijuana may be legal in some locations, it is still illegal for truck drivers under federal law.

Hammer down everyone!