Plus: AI boosts speed, accuracy in logistics despite challenges
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July 9, 2025
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American businesses face a significant financial burden from proposed tariffs, with a JPMorganChase Institute analysis estimating an $82.3 billion direct cost for mid-sized companies. Wholesalers and retailers have the highest direct exposure to tariffs, according to the analysis, which notes these sectors operate on low margins and may need to pass the cost of tariffs on to their customers.
Full Story: Modern Distribution Management (tiered subscription model) (7/7),  The Associated Press (7/2),  SupplyChainBrain (7/3) 
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AFC Industries, a distributor of fasteners and provider of vendor-managed inventory, has purchased Chicago-based Cavanaugh Government Group, which specializes in parts and services for military and defense applications. AFC aims to strengthen its aerospace and defense group and enhance its offerings to customers requiring specialized solutions.
Full Story: Modern Distribution Management (tiered subscription model) (7/7) 
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US tariffs are significantly reshaping global supply chains. Companies are shifting manufacturing from China to countries such as Vietnam and India to reduce tariff costs, while exporters in Europe and Canada reconsider their US market strategies. These changes are causing businesses to incur additional costs, pass higher prices on to consumers, and in some cases, reduce export volumes to the US in favor of other markets.
Full Story: BBC (7/6) 
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Operations and Technology
AI holds significant potential for logistics, but its adoption has been slow due to the industry's physical nature and concerns over errors, says Brett Webster of Dematic. However, some companies are beginning to see substantial returns on investment, with Anyline's Barcode:AI combining AI and augmented reality to improve barcode scanning and Southern Glazer's Wine and Spirits' use of AI for demand forecasting, managing 57% of its order volume and reducing excess inventory.
Full Story: DC Velocity (7/6) 
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Delivery expectations among Gen Z and younger millennials are increasingly shaping the ecommerce landscape. These consumers prioritize cost, security, delivery tracking and sustainability. However, only 11% of under-35s report being consistently satisfied with their delivery experience, and a striking 79% have encountered delivery issues, according to the recent Descartes study, "How Smarter Delivery Wins Younger Consumers as Online Buying Slow."
Full Story: SupplyChainBrain (7/7) 
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UPS has introduced buyouts for its full-time delivery drivers for the first time as part of a broader effort to manage declining parcel volumes and high labor expenses. The shipping company reported a 3.5% drop in average daily package volume in the US in Q1 this year and has plans to deliver fewer packages for Amazon, its largest customer, citing concerns over low margins on these shipments.
Full Story: The Wall Street Journal (7/3) 
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Sales and Marketing
Trust is crucial in B2B relationships, and Forbes Communications Council members offer 20 tips for building it from the start. Suggestions include being honest about solutions, focusing on buyer needs, acting as a partner, providing educational content and showing empathy. Other strategies involve leveraging LinkedIn, sharing success stories and offering personalized experiences.
Full Story: Forbes (tiered subscription model) (7/2) 
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The Business Leader
A solo microphone stands before an out of focus audience
(Charlie Parker/Getty Images)
Stand-up comedians know how to read a room and get to their point quickly, which are two things leaders must also learn, writes Kellie Walenciak, the global head of marketing and communications for Televerde, who moonlights as a comedian. Other lessons the stage has taught Walenciak about better leadership include being authentic and using self-deprecating humor to build trust and connection, which can help create psychological safety for teams.
Full Story: Chief Executive (7/3) 
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About NAW
The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.
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