At IGNITE 25, I had the honor of moderating a panel featuring industry experts from our valued partner network. Together, we explored the most pressing challenges and emerging opportunities in today’s supply chain and logistics landscape.
This blog post summarizes the key takeaways from that insightful discussion. While there are no simple answers, I hope it offers some useful ideas and fresh perspectives to help you think through the complexities of this ever-changing landscape.
One of the primary topics was the recent elimination of Section 321 in the United States as of August 2025, which has removed the duty-free benefit for low-value e-commerce shipments. Our partner panelists shared how this change is prompting manufacturers and logistics providers to rethink their distribution strategies. Many are shifting inventory closer to the end market, establishing separate warehouses in the U.S. and Canada to avoid costly import duties and reduce border delays.
As Reg Adams, Co-Founder and Board Member of Techdinamics, explained:
“The legitimate process now is you can do B2B cross-border, but you have to have a presence in the United States… So the general consensus we’re seeing is manufacturers are saying, ‘We’re done with this. We’re going to send inventory to the U.S. and distribute it throughout the U.S., and we’re going to send inventory to Canada and distribute out to Canada.’ Section 321’s gone, and everybody’s moving on.”
Reg Adams - Co-Founder / Board Member, Techdinamics.
Additionally, freight and 3PL companies are adapting by offering tailored warehousing solutions and streamlining customs processes to help clients comply with the new regulations.
The panel discussed the relentless pressure of rising parcel and freight costs, noting an unprecedented number of off-cycle rate increases and additional surcharges imposed by carriers over recent years. This volatile pricing environment makes carrier contract negotiation critical.
According to Jason Robinson, Director of Parcel Partnerships and Strategic Alliances at Transimpact:
“In the last two years there’s been 22 off-cycle rate increases. 16 of them are non-fuel-related. […] If my dimensional adjustments are skyrocketing, what do I do about that, right? […] If you're not paying attention as a shipper on that, that is massive as far as the cost increases. You wouldn't even notice if you're not paying attention or you're not using some type of technology or analytics to pay attention to it.”
Jason Robinson - Director of Parcel Partnerships and Strategic Alliances, TransImpact.
Strategic negotiation and invoice auditing have become indispensable tools to control transportation spend and protect margins.
Technology, especially artificial intelligence (AI), emerged as a crucial enabler in tackling complexity and labor constraints. AI accelerates data analysis, enabling faster invoice auditing, demand forecasting, and operational decision-making. Other innovations, such as drones for cycle counting, camera systems for inventory verification, and barcode scanning automation, are increasing efficiency in warehouse operations.
However, as Errol Gonzales, Director of Sales at Made4net, highlighted, technology investments must be aligned with current volume levels and deliver measurable return on investment, rather than rushing into large-scale projects:
“At the end of the day, it only is cost-prohibited based upon your volume. So if you don't have the volume, don't go get a $250,000 hardware technology update. […] There's proven ROI. When you talk to individuals that are doing those technology advancements, their contracts are going to be driven on ‘I can improve and provide you the ROI, the savings.’”
Errol Gonzales - Director of Sales, Made4net.
Labor availability remains a critical challenge. With an anticipated shortage of millions of logistics workers over the next decade, companies must optimize labor productivity.
Geoff Greenhill, Director of Sales at Camelot 3PL Software, stressed the importance of practical, near-term improvements:
“About 55% of your labor cost is just travel time, moving from order to order. So if you can reduce that, you’re going to reduce your total overall headcount needed for fulfillment of orders.”
Geoff Greenhill - Director of Sales, Camelot 3PL Software.
He explained that companies don’t necessarily need to leap into full-scale automation to achieve this; lighter solutions such as pick-to-cart or pick-to-light systems can be faster to implement, less costly, and still deliver meaningful improvements.
Retention strategies, such as employee engagement and supportive workplace culture, were also recommended to hold on to existing talent while automation gradually scales.
The IGNITE 25 panel underscored that successfully navigating today’s supply chain environment requires a multifaceted strategy: understanding shifting regulations, harnessing the power of data and technology, managing rising costs proactively, and investing in workforce resilience.
Or as Reg Adams encouraged in closing:
“This is actually an opportunity for the 3PLs to reach out to the customer and say, hey, we got warehousing for you, we can cover you.”
Want to discuss these challenges further or explore how Techdinamics and our partners can support your fulfillment strategy? Contact us