The annual State of Logistics Report shows that a chaotic and unpredictable 2020 led to logistics cost dropping by 4%. Expect this trend of constant change to continue, authors say.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
The past few years have been turbulent ones for the logistics industry, which may have many supply chain professionals asking themselves, “Whatever happened to predictability?”
In particular, 2020 was a chaotic year of sudden stops, stuttering starts, dips, drips, and explosive rises—all while trying to reroute assets on the fly. As a result of this unpredictable, pandemic-driven year, U.S. business logistics costs fell 4.0% to $1.56 trillion, or 7.4% of 2020’s $20.94 trillion U.S. gross domestic product (GDP), according to the 32nd Annual Council of Supply Chain Management Professionals (CSCMP) State of Logistics Report.
The main driver of that drop was the decrease in inventory carrying costs, which fell 15%,due to the sudden drop in manufacturing and commerce early in the year caused by pandemic shutdowns.
This meant transportation volumes also fell. However, costs for many transportation and warehousing services rose, as networks dealt with capacity shortages, port congestion, and major shifts in consumer demand as well as assets that could not be deployed or redeployed efficiently. According to the report, 2020 exposed logistics systems that were optimized for cost and efficiency but were fragile and lacking resiliency in the face of disruptions.
“The 2020 upheaval of supply chains created chaos that placed gigantic demand on logistics, resulting in higher prices for logistics services despite a shrinking economy,” said Michael Zimmerman, one of the authors of the report and a partner with the consulting company Kearney at a press conference. “At the same time, due to halted economic activities during lockdowns and decreases in financial costs, logistics costs account for a lower percentage of GDP at 7.4% compared to the 7.6% in 2019.”
SECTOR-BY-SECTOR BREAKDOWN
Some segments of the market did better than others in riding out the storm. Here’s a quick look at how some of the key modes and segments in the logistics industry fared. (For more in-depth analysis, see the report itself, which can be downloaded from CSCMP’s website.)
Motor carrier freight: Trucking, the biggest segment of U.S. logistics spend, fell by 1.6% year over year. A strong fourth quarter and a continuing economic recovery, however, indicate that rates will remain high through 2021. One silver lining of the pandemic is that the need to avoid “touch” processes drove many trucking firms to finally embrace digitization. New digital technologies, such as online freight booking and digital bill of materials, should lead to improved services levels in the future, predicts the report.
Parcel: Homebound consumers caused e-commerce to explode in 2020, growing by 33% to $792 billion or 14% of all retail sales. This rapid rise fueled a 24.3% year-over-year increase in parcel shipping spend, which totaled $118.6 billion, but it also had shippers scrambling to adjust their delivery offerings and solutions.
Rail: Volumes and revenue were down overall for the rail industry, with spend dropping 11% year-over-year to $74.3 billion. This drop was due to reduced volumes in industrial products and coal. Intermodal, however, saw smaller declines as high trucking prices pushed some shippers to switch modes.
Water: Logistics costs associated with water shipping dropped 28.6% year over year, in part due to a one-time reclassification in the report’s methodology. However, the decrease in exports and in traffic on domestic waterways would have kept costs down substantially regardless of the recalculation. Rates and volumes, however, soared in late 2020 as retailers restocked and have remained high ever since.
Air cargo: Air cargo costs totaled $96.5 billion in 2020, a 9% increase over 2019. Rates remain “shockingly high” even in mid-2021, as most airlines have not recovered from the cancellation of passenger flights in 2020. The authors expect that demand will continue to exceed supply in 2021.
Warehousing: The e-commerce boom spurred high demand for warehousing space especially in urban locations. At the same time, warehouse flows have become more complicated and labor conditions remain tight, leading more warehouses to turn to automation.
Freight forwarding: While volumes declined in this segment, higher rates led to higher 2020 revenues. The report predicts that freight forwarding will see fierce competition as more traditional providers face off against new digital startups, carriers seeking to become end-to-end providers, and ambitious moves from Amazon and Maersk. They also predict more mergers and acquisitions ahead.
Third-party logistics providers (3PLs): While many 3PLs saw higher revenue last year, some experienced cost increases, which harmed their profitability. The report authors predict that as supply chain and logistics become more complex, the sector will continue to growth.
MORE CHANGE AHEAD
In spite of the upheaval of the past year, the report authors are hopeful. Logisticians proved themselves capable of quickly abandoning old plans, solving new problems, and handling disruptions. This ability to adapt will serve logistics professionals well in the future, as the report predicts that the pandemic’s aftereffects and “new surprises” will force logistics professionals to continually change their plans.
“There is no relief in sight,” said Zimmerman.
The list of potential future disruptors includes the trend toward multishoring, continuing technological advances, and climate-related disasters—to name just a few.
The report authors also predict that the cost of logistics will rise as the scope of what the field encompasses grows. As an example, they point to last-mile delivery, which used to be a “domestic” activity performed by consumers and is now an increasingly commercial one.
After the stresses of last year, logistics executives are focused on rebuilding their supply chains to be more resilient. State of Logistics Report authors don’t expect these changes to be minor. They predict that in 2021 and beyond executives will be fundamentally rethinking and redesigning their logistics networks. “In 2021, even if conditions prove less volatile, the changes may be more profound,” concludes the report.
The nearly consecutive landfalls of Hurricanes Helene and Milton made two things clear: disasters are inevitable, and they’re increasing in frequency, scope, and severity. As logistics and supply chain leaders look toward 2025, disaster recovery planning should be top of mind—not only for safeguarding business operations but also for supporting affected communities in their recovery efforts. (For a look at lessons learned from 2024, please refer to the sidebar below.)
To ensure that they have a comprehensive plan in place, supply chain professionals should take a three-pronged approach that incorporates working with local emergency organizations, nonprofits, and internal partners.
Build relationships with local organizations
A critical first step in disaster readiness is identifying and establishing relationships with local emergency management organizations. Local emergency managers specialize in coordinating immediate disaster responses on the ground in their communities. While they’re well-versed in terms of supporting the continuity of critical infrastructure like hospitals, fire stations, and city services, they’re often less acquainted with the important connection between healthy supply chains and community resilience.
When local officials have a limited understanding of the critical role that distribution centers, manufacturing plants, or food suppliers play in disaster response, it can delay restoration of the flow of supplies to grocery stores, big box stores, and similar locations. For example, ensuring that debris on roads to a warehouse is cleared rapidly following a storm may not be high on the government’s priority list. However, doing so can help keep grocery stores stocked and supply chains intact, reducing the burden on the government to provide those resources.
With this in mind, invite local emergency management officials to tour your logistics facilities and explain the critical role your organization plays in maintaining the flow of goods within the broader community. This firsthand look will help them understand how your operations contribute to community resilience and support the local economy.
ALAN has been helping to connect nonprofits with logistics resources since 2005. Here supplies are packed up for transport and distribution to Hurricane Maria survivors in 2017.Photo courtesy of ALAN
Partner with nonprofits
There are many reasons why it makes sense for members of the logistics community to build partnerships with nonprofits before disasters hit. But one of the most important is this: Even the most well-organized of them usually experience logistics gaps. Many nonprofits lack a comprehensive understanding of how to create an effective logistics organization. Even if they do have logistics staff, they will often need additional logistics resources once a disaster hits to meet surging demand for services. However, after a disaster most nonprofits are usually operating at such a high capacity that they don’t have the time or bandwidth to onboard new logistics partners.
These logistics gaps—and the onboarding challenges that disasters create—are a key reason why the American Logistics Aid Network (ALAN) exists. The organization has spent 19 years connecting nonprofits with the logistics services and expertise they need with the help of a well-established network and preplanned resources. ALAN works to make it easy for logistics professionals to support disaster-stricken areas with everything from warehousing to transportation to material handling equipment.
Like all nonprofits, ALAN is able to carry out its work even more effectively when organizations reach out to ask, “How can we help?” long before a disaster occurs. The most effective disaster response is based on the preparation and strong relationships that have been built during quieter times.
Companies can offer their services ahead of time via ALAN’s webform (www.alanaid.org/volunteer/). ALAN then meets with each business to determine what services and equipment it can offer in tmes of need. When there is a request that matches a business’ profile, ALAN will reach out to see if the organization can assist.
By onboarding new partners when things are calm, ALAN can ensure that resources and logistics networks are primed, optimized, and ready for immediate action. This proactive approach makes sure that critical supplies and aid can reach those in need without delay. As a result, itprovides quicker support for affected residents and businesses alike and strengthens the resiliency of communities.
The nonprofit Unity in Disasters needed 30 pallets of food transported to Jackson, Miss., to help Hurricane Ida survivors in 2021. ALAN was on hand to coordinate a response.Photo courtesy of ALAN
A culture of safety, preparedness
While community preparedness is crucial, building a strong culture of personal and corporate readiness within your organization is equally important. A preparedness culture can safeguard employees and ensure operations can resume as quickly as possible after a disaster.
In light of this, encourage your personnel to identify safe locations for shelter or evacuation, assemble emergency supply kits, and follow advice from local officials during a crisis. This responsibility typically falls to a corporate safety officer, but for smaller organizations, supervisors or administrative staff may have to coordinate the efforts.
Just as important, consider taking a page from the book of the many logistics companies that have already begun offering training sessions to help employees prepare for various disaster scenarios. Some of these training sessions are as simple as start-of-shift conversations about shelter-in-place locations or evacuation routes. Other organizations do full-scale exercises. There are lots of resources companies can pull from to develop these training sessions, including businesses that specialize in corporate crisis training. The Association of Continuity Professionals has resources, as does the Federal Emergency Management Agency (FEMA), via their Ready Business website.
Some businesses even partner with local first responders to conduct walkthroughs of their facilities, ensuring firefighters and paramedics are familiar with the layout. These partnerships provide vital information that enables emergency crews to navigate facilities more effectively in a crisis, further safeguarding employees and reducing potential downtime.
Strengthening community resilience
When disasters strike, logistics and supply chain organizations have the ability to be game changers in the best possible way, strengthening community resilience.
By building relationships with local emergency management and nonprofit organizations, they can contribute to considerably more efficient and coordinated disaster response. Likewise, sharing their supply chain resources with nonprofits ensures help will arrive faster and allows each donated dollar to go farther. And by doing what they can to protect themselves and restore the ability to deliver food, water, and medical supplies to disaster survivors, they can make the difference between stability and prolonged hardship.
Working collaboratively, logistics and supply chain organizations can help communities withstand and recover from the worst, enabling a faster, stronger return to normalcy.
Learning from 2024
By looking back on the logistics challenges of the 2024 hurricane season and reflecting on the responses to Hurricanes Helene and Milton, we can gain valuable lessons for the future.
North Carolina faced severe infrastructure damage, including to roads, bridges, and utilities. Prioritizing road and rail rebuilding became paramount in order to reestablish connections between cities and manufacturing hubs.
Similarly, pharmaceutical facilities in affected areas needed clean water sources restored to resume production. When two separate IV fluid suppliers’ facilities—one in North Carolina and one in Florida—could not gain access to clean water due to hurricane damage, hospitals across the country experienced shortages. This disruption highlighted the importance of immediate utility restoration for critical industries.
Effective disaster preparedness must include insight into each community’s unique infrastructure and supply chain risk factors. It comes as no surprise that logistics organizations with strong ties to a community are especially qualified to help other business and government professionals understand these dynamics, which help to effectively allocate and position recovery resources.
Maersk’s overall view of the coming year is that the global economy is expected to grow modestly, with the possibility of higher inflation caused by lingering supply chain issues, continued geopolitical tensions, and fiscal policies such as new tariffs. Geopolitical tensions and trade disruptions could threaten global stability, climate change action will continue to shape international cooperation, and the ongoing security issue in the Red Sea is expected to continue into 2025.
Those are difficult challenges, but according to Maersk, a vital part of logistics planning is understanding where risk and weak spots might be and finding ways to dampen the impact of inevitable hurdles.
They include:
1. Build a resilient supply chain As opposed to simply maintaining traditional network designs, Maersk says it is teaming with Hapag-Lloyd to implement a new East-West network called Gemini, beginning in February, 2025. The network will use leaner mainliners and shuttles together, allowing for isolation of port disruptions, minimizing the impact of disruptions to supply chains and routes. More broadly, companies should work with an integrated logistics partner that has multiple solutions—be they by air, truck, barge or rail—allowing supply chains to adapt around issues, while still meeting consumer demands.
2. Implementing technological advances
A key component in ensuring more resilience against disruptions is working with a supply chain supplier that offers advanced real-time tracking systems and AI-powered analytics to provide comprehensive visibility across supply chains. An AI-powered dashboard of analytics can provide end-to-end visibility of shipments, tasks, and updates, enabling efficient logistics management without the need to chase down data. Also, forecasting tools can give predictive analytics to optimize inventory, reduce waste, and enhance efficiency. And incorporating Internet of Things (IoT) into digital solutions can enable live tracking of containers to monitor shipments.
3. Preparing for anything, instead of everything Contingency planning was a big theme for 2024, and remains so for 2025. That need is highlighted by geopolitical instability, climate change and volatility, and changes to tariffs and legislation. So in 2025, businesses should seek to partner with a logistics partner that offers risk and disruption navigation through pre-planned procedures, risk assessments, and alternative solutions.
4. Diversifying all aspects of the supply chain Supply chains have felt the impact of disruption throughout 2024, with the situation in the Red Sea resulting in all shipping having to avoid the Suez Canal, and instead going around the Cape of Good Hope. This has increased demand throughout the year, resulting in businesses trying to move cargo earlier to ensure they can meet customer needs, and even considering nearshoring. As regionalization has become more prevalent, businesses can use nearshoring to diversify suppliers and reduce their dependency on single sources. By ensuring that these suppliers and manufacturers are closer to the consumer market, businesses can keep production costs lower as well as have more ease of reaching markets and avoid delay-related risks from global disruptions. Utilizing options closer to market can also allow companies to better adapt to changes in consumer needs and behavior. Finally, some companies may also find it useful to stock critical materials for future, to act as a buffer against unexpected delays and/or issues relating to trade embargoes.
5. Understanding tariffs, legislation and regulations 2024 was year of customs regulations in EU. And tariffs are expected in the U.S. as well, once the new Trump Administration takes office. However, consistent with President-elect Trump’s first term, threats of increases are often used as a negotiating tool. So companies should take a wait and see approach to U.S. customs, even as they cope with the certainty that further EU customs are set to come into play.
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Attendees visit the CSCMP EDGE 2024 Resource Center.
As I assume the role of Chair of the Board of Directors for the Council of Supply Chain Management Professionals (CSCMP), I fondly reflect on the more than 10 years that I’ve had the privilege of being part of this extraordinary organization. I’ve seen firsthand the impact we have had on individuals, companies, and the entire supply chain profession.
CSCMP’s journey as an organization began back in 1963. It has since grown from a small, passionate community to the world’s premier association for supply chain professionals. Our mission—to connect, educate, and develop supply chain professionals throughout their careers—remains not only relevant, but vital in today’s world.
As we look ahead, the opportunities are vast. What stands out the most to me is simply this:We are stronger together. Every individual brings a unique perspective, and it’s through our collective wisdom and efforts that we will continue to advance the work we do. The road ahead is not one we travel alone. It’s a path we navigate as a community—one united in purpose and direction.
My vision for the year ahead centers around growth—growth in our global reach and, perhaps even more importantly, growth in how we engage and support each other. We have tremendous opportunities for international expansion, especially in Europe, the U.K., Mexico, Central and South America, and Canada. I’m happy to share that we're already seeing progress in our reach to these regions.
I'm incredibly excited about the potential for even more growth ahead. One of the initiatives I am most passionate about is our Centers of Excellence. These centers will provide members the space to engage deeply in key supply chain disciplines. I invite each of you to dive into these areas, share your experiences, and contribute to the innovative solutions we develop together. There will be plenty of opportunity to do so. These centers are not only academic spaces—they are hubs for innovation, where we can share best practices and work together to solve our industry’s biggest challenges.
Education and thought leadership will continue to be at the heart of what we do. By expanding our research capacity, we will offer cutting-edge insights that keep our members at the forefront of industry trends and innovation. Through our platforms, we will create even more opportunities for connection and collaboration—ensuring that every voice is heard. Your insights, curiosity, questions, and engagement will drive the transformation we seek. We all play a part in the advancement of our industry and our profession.
Our impact begins with membership. Expanding collaborations with public, private, and nonprofit sectors will give us new ways to drive progress. In a world where our ecosystem is even more interconnected than ever before, the ability to engage with diverse stakeholders will help us unlock new solutions and truly make a difference on a global scale. None of this would be possible without the strong foundation that has been built over the years by serving our supply chain community. Each of you holds the ability to shape the future of the supply chain, and I can’t wait to see what we will achieve together.
The concept of using a neutral third party to resolve conflicts between suppliers and customers is not new. Mediation and arbitration have long been considered as more efficient and less costly ways to resolve contractual disputes than litigation. In fact, 2025 marks the 100th anniversary of the Federal Arbitration Act, which allows for contract disputes to be resolved through a private resolution process instead of going to court.
Over the years, the concept of using a neutral has expanded to include more preventive techniques for keeping business relationships healthy and addressing potential contractual misalignments earlier. For example, the construction industry has been utilizing the concept of a dispute review board (DRB) since 1975 to solve issues that arise during major projects, such as cost overruns, schedule delays, and disputes over payment or the quality of workmanship. The DRB is typically a panel of three independent expert advisors who are immediately available to help resolve disputes that arise during the contractual relationship.1 The panel is formed at the beginning of the construction project with the goal of resolving any issues or differences before they become formal claims.
Recently the concept has evolved further into what is now known as a “standing neutral” and has been adopted by companies in many industries outside of construction. A standing neutral is a highly qualified and respected expert, selected by both parties in a business relationship to help them resolve issues and maintain a healthy relationship. This can best be described as a proactive approach where the neutral provides quick, informal, flexible, adaptable, and nonadversarial ways for preventing disputes.
The role of the standing neutral
Unlike a neutral third party used on an ad-hoc basis for dispute resolution in mediation or arbitration, a standing neutral is a readily available “fast response” technique. It is designed to prevent any issues from escalating into adversarial disputes that might otherwise go to mediation, arbitration, or litigation. A key feature is that the neutral is “standing,” meaning it is integrated into the parties' continuing governance structure. Another key concept is that the standing neutral supports the relationship itself and both parties equally; the goal is to ensure the success of the relationship.
Embedding a standing neutral into a contracting party's governance structure can have a powerful impact on the success of the business relationship. The standing neutral provides a helpful "dose of reality" to the parties and encourages them to be more objective in their dealings with each other. When differences of opinion arise, the parties can quickly use the standing neutral as an objective sounding board, obtaining a recommended course of action that is minimally disruptive to the business relationship.
While the classic role of a standing neutral is to serve as a “real-time” issue-resolver throughout a relationship, companies have begun to expand how they have used a standing neutral. The University of Tennessee’s research—which is detailed in the white paper “Unpacking the Standing Neutral”—reveals the creative ways that companies are using a standing neutral.2 For example, some companies are increasing the role of their standing neutral to support annual relationship health checks and even using neutrals as “deal facilitators” to help craft highly complex or strategic outsourcing agreements.
Today, there are many different variations of a standing neutral. Figure 1 shows some of the most common options companies can consider when designing the role and scope of their standing neutral. In the figure, these options are organized across nine design principles or considerations. For an example of how a standing neutral can operate in a real-world setting see the sidebar “Idea in action: EY case study."
Getting ramped up
If you think using a standing neutral would benefit one of your relationships, we suggest going through the following simple stages. It’s important to note that the cost and expenses of the standing neutral are absorbed equally by both parties.
1. Selection: At the outset of their relationship, parties select one person (or three) with whom they trust and have confidence to serve as standing neutral throughout their relationship. A single standing neutral should always be entirely independent. In most cases where there is a panel of neutrals, each party nominates one member, and the two nominated neutrals will select a third member; in such cases, it is typically required that every panel member be acceptable to both parties and that all panel members be independent and impartial, with no special allegiance to the nominating party.
As part of the selection process, the parties formalize an agreement with the standing neutral, which includes determining the standing neutral's responsibilities and authority. The nine design principles in Figure 1 can be used to accomplish this.
2. Briefing: The parties brief the standing neutral regarding the nature, scope, and purpose of the relationship or venture. As part of the briefing, the standing neutral is usually equipped with a basic set of contract materials and supporting documents.
3. Continuing involvement: A key part of designing a standing neutral program is embedding your standing neutral as part of your ongoing governance. For example, we recommend at a minimum that the parties have their standing neutral attend the parties’ quarterly business reviews and lead an annual relationship health check. This enables the standing neutral to meet regularly with the parties to review the progress of the relationship, even if there are no issues.
Alternatively, it is possible to have a
standby neutral (versus a standing neutral). In the case of a standby neutral, the neutral is merely available on an ad-hoc basis to be called on whenever necessary to give an advisory opinion.
Why standing neutrals work so well
Standing neutrals have had a remarkable record—especially for resolving issues before they become disputes. A study of the use of standing neutrals in the construction industry found that, in the vast majority of cases, the parties never look to the standing neutral to make any dispute resolution recommendations or decisions. (And in the small minority of cases where the standing neutral actually makes a recommendation, 95% of the recommendations are accepted by the parties without resorting to mediation, arbitration or litigation.
3)
It may seem counterintuitive that having a standing neutral reduces the likelihood of needing a third party to resolve disputes. But research has found that the presence of others causes people to behave more honestly and reign in unethical behavior such as cheating. These effects are amplified when the third-party observer is knowledgeable in the subject matter of the agreement and in the nature of the agreement.
The establishment of a standing neutral—which appears at first to be merely an efficient technique for quickly resolving disputes—creates a dynamic situation in which the participants change their relationship and their attitudes toward each other. The changes usually are an evolution, rather than a conscious effort. For example, at first it is common for contracting parties to feel they are simply choosing a neutral expert for resolving conflicts between them promptly. However, as the standing neutral interacts with the parties during ongoing governance forums, the parties develop a greater sense of confidence in the standing neutral's ability to quickly alleviate friction in the relationship. When this happens, the parties shift their view of the standing neutral from “dispute-resolver” to one of “sensible sounding board.”
The presence of a standing neutral also encourages teamwork and improved performance by all parties. The contracting parties become incentivized to concentrate on “fixing the problem” rather than “fixing the blame,” and use their mutual knowledge to solve the problem rather than relinquishing control to the neutral. A side benefit is when the parties construct their own solutions to problems, they often increase their trust and confidence in each other's abilities, which ultimately strengthens the relationship. For these reasons, the standing neutral serves as not only a standby dispute resolution process, but also as a remarkably successful dispute prevention process.
Notes:
1 For more information see A. A. Mathews, Robert J. Smith, Paul E. Sperry, and Robert M. Matyas, Construction Dispute Review Board Manual, (New York: McGraw-Hill, 1996): p. 10
The global consulting firm EY was looking to outsource the food services, cleaning services, and maintenance at its facilities to the provider Integrated Service Solutions (ISS). But the company wanted to do so in a way that was completely different from how it had approached outsourcing workplace services in the past. EY and ISS wanted to create an outsourcing agreement that was highly collaborative and beneficial for both parties.
To do so, they incorporated a standing neutral in the contracting process from the outset. Together the parties selected one standing neutral—Erik Linnarsson, a lawyer from Cirio Law Firm—as a deal facilitator. Linnarsson was trained as a certified deal architect (CDA) to craft complex outsourcing agreements.
Post contract signing, the parties continued to use a standing neutral, embedding Linnarsson into the outsourcing relationship’s ongoing governance. Linnarsson supported both mid- and higher-level governance forums. He also acted as both an expert coach and evaluator for issue resolution, providing advice as problems arose. If needed, Linnarsson had the authority to make formal, nonbinding recommendations. When Linnarsson decided to retire, EY, ISS, and Linnarsson ramped up one of Linnarsson’s colleagues, who now serves the role of standing neutral.
The parties also have tapped into their standing neutral for additional post-support services that are preventive in nature. These include ongoing performance management alignment and performance relationship health monitoring. For example, one role of the standing neutral is conducting an annual relationship health check, which includes measuring the level of trust and compatibility between the two partners.
The standing neutral also supports strategic reviews, including reviewing the contract for any misalignments. For example, when the parties initially created the agreement, they had decided to use a specific sustainability metric. However, since signing the contract, regulatory requirements around sustainability have become stricter. In addition, EY wanted to be a global leader in sustainability. As part of the proactive review, and with the help of the standing neutral, the parties worked together to revamp the metric.
Magnus Kuchler, EY’s markets leader and country managing partner for EY Sweden, believes that using a standing neutral has had a positive impact on the outsourcing relationship. “Simply having a trusting and credible standing neutral post-contract signing gives team members a sounding board that helps people make better decisions,” he said. “Using a standing neutral is truly a powerful tool to help contracting parties maintain a healthy relationship—which ultimately prevents costly disputes.”