DIALOGUE: A CONVERSATION WITH A SUPPLY CHAIN LEADER
Heather Sheehan: A career built on reaching out and reaching beyond
Heather Sheehan is the Council of Supply Chain Management Professional's 2024 Distinguished Service Award Winner.
Photo courtesy of Heather Sheehan
The 2024 CSCMP Distinguished Service Award recipient has shown a lifelong commitment to both promoting the supply chain as a strategic business process and to mentoring others.
Heather Sheehan’s career has taken her into almost every corner of the supply chain—from Fortune 500 corporations to industry associations to consulting and academia. But although she has traveled down many branches of the supply chain, some things have always remained constant: a desire to elevate the supply chain discipline as a whole and a desire to elevate others into stronger, more well-rounded leaders.
Given Sheehan’s steady focus on service to the industry, it makes sense that she is being honored with the 2024 Distinguished Service Award (DSA) from the Council of Supply Chain Management Professionals (CSCMP). Regarded as the most prestigious honor in the supply chain field, the DSA recognizes those supply chain leaders who exemplify significant, consistent, and career-long contributions to the development of the logistics and supply chain management disciplines.
Sheehan’s career has spanned more than 30 years, beginning at the railroad company Union Pacific Corp. From there, she moved on to various leadership positions in procurement, logistics, and marketing with Honeywell and NCR Corp. In 2002, Sheehan joined Danaher Corp., an American global conglomerate that designs, manufactures, and markets medical, industrial, and commercial products and services. There, she served as the vice president of indirect sourcing and logistics, acting as co-chief procurement officer with worldwide responsibility for nonproduction and logistics sourcing, strategy, and implementation across the corporation’s 40-plus operating companies. She was involved with operations in 125 countries and led successful changes in supply chain processes, policies, talent, quality, efficiency, and acquisitions as Danaher grew from $3 billion to over $20 billion in revenues in her 13 years with the company.
At the same time that she was leading these major supply chain initiatives within her own company, Sheehan was also holding significant volunteer leadership roles outside of it. For example, she served on the CSCMP Board of Directors for more than a decade and as chair from 2013 to 2014 and was actively involved in AWESOME, a leadership community dedicated to achieving women’s excellence in supply chain operations, management, and education.
When Sheehan took over as executive director and board advisor for the nonprofit AWESOME in 2018, it felt like a natural outgrowth of her previous efforts. As director, she helped grow membership to more than 1,500 executive level women and significantly increased the number of corporate sponsors.
Throughout all these endeavors Sheehan has been an active proponent of seeing the supply chain as more than just a transactional, operational function. Instead, she has pushed those around her to realize supply chain’s potential to drive innovation and top- and bottom-line growth. As part of those efforts, she called upon her fellow supply chain professionals to develop a strategic, business-focused mindset. Now many of the people she mentored have themselves risen to senior level positions. She is, as one nominator called her, a “people builder.”
These passions continue in her current work as a consultant and educator. As owner of Crispy Concepts LLC, she provides clients with supply chain and leadership consulting, and she is also an instructor with Penn State University and a board member and adjunct faculty member with University of Denver’s Transportation & Supply Chain Institute.
Sheehan is set to receive the Distinguished Service Award during the opening general session of the CSCMP EDGE Supply Chain Conference & Exhibition in Nashville, Tennessee. In the lead up to the conference, Sheehan took some time to answer questions from Supply Chain Xchange’s executive editor Susan Lacefield.
You have been involved in many different aspects of supply chain management over the years. Can you tell me a little about your career path?
My focus in grad school was on industrial marketing and the application of quantitative principles to decision-making, which led to me to joining Union Pacific Corp. in marketing and business development roles. I was fascinated by the railroad, its operations, and the generally unseen impact that freight transportation has on our macro economy as well as our day-to-day lives. It was the late 1980s so we didn’t call it “supply chain” yet.
Eventually, I moved to the manufacturing industry where I was immersed in end-to-end logistics, warehousing, demand and materials planning, and procurement. It all felt very transactional, reactionary, and nonstrategic. But then I joined Danaher Corp., which sort of flies under the radar but has a tremendous record of success. Danaher gave me the latitude and resources to build a supply chain function that was strategic, process-oriented, innovative, and recognized by the CEO. It was so rewarding to create and lead a team that added real value to our customers, our employees, our suppliers, and our shareholders.
You have been heavily involved in industry associations over the years—both CSCMP and AWESOME. Why do you feel it is important to get involved in such organizations?
As board chair for CSCMP and executive director of AWESOME, I wanted more people to know about and benefit from participating in the organizations. It’s so easy to become engrossed in our daily work that we can’t see new and different methods. Environments inside our companies can be insular and isolating. CSCMP and AWESOME give opportunities for learning about new innovations and different viewpoints because they both have a great cross-section of practitioners, academics, service providers, and consultants. I am regularly enlightened by my CSCMP and AWESOME colleagues about new approaches to leadership, technology, and process improvement.
Why have you been so passionate about AWESOME? What do you feel it provides to the supply chain management field in general, and more specifically to women working in supply chain management?
My first reaction when invited to AWESOME’s inaugural event in 2013 was that Ann Drake (CSCMP’s first female DSA winner) was trying to sell me something, and anyway, why would I need a network of women? I was doing pretty darn well in my career. By the next year, I got good recommendations from trusted people, so I participated in AWESOME’s symposium and was surprised by how good it felt to be with 100 other women who had also made it to senior-level leadership positions. It was so much fun and easy to build new friendships and alliances with these like-minded, accomplished women. Together, we created ways to find and elevate more great female talent into supply chain leadership through our networking, mentoring, and scholarships. Ann Drake and AWESOME’s first executive director, Nancy Nix (CSCMP’s DSA winner in 2017), are absolute visionaries.
You currently have your own consulting company Crispy Concepts. What types of consulting projects do you particularly relish?
I love helping senior leaders facilitate and guide their change management efforts and create value across their entire supply chain ecosystem. I see so many leaders make the mistake of believing they create value by pushing cost off to another partner in the supply chain, so I drive people to think carefully and critically about truly creating value. I also teach executives and master’s degree students at Penn State and the University of Denver, which is particularly rewarding. My focus is on sharing practical strategies for problem-solving, collaboration, talent assessment and retention, dealing with cultural and communication barriers, and helping students understand that the skills and expertise that are built early in their career are not what takes them to the next level into leadership. That next level requires bigger thinking and actions that drive breakthrough improvements for their broad set of stakeholders.
What is your proudest professional achievement?
I am proud of the supply chain that I built for Danaher, which involved many innovations that injected process, metrics, and discipline into procurement, logistics, talent management, and acquisition integration at Danaher. These innovations led to better decision-making, lower costs, higher service, better teams, and less disruption for employees, customers, suppliers and shareholders. I am proud of the unrelenting focus on continuous improvement and value creation. On a more personal level, I am so proud of being a positive example of ethical leadership and helping others to develop their careers. Several former employees and mentees have said, when facing a challenging situation, they think, “What would Heather do?” to help them figure out their next step. It’s a powerful compliment that makes me proud.
What advice do you have for someone starting their career in supply chain management?
It’s good to have personal career goals but allow yourself flexibility. As your life circumstances change, as the economy fluctuates, as technology evolves, as you learn more, you will find that new paths and opportunities arise. If you have a rigid idea of what your career should look like, you will fail to recognize some great avenues for personal development, interesting work, and possibly financial gain. The example from my career is that I hesitated when Danaher started recruiting me because they were one-quarter the size of the very large company I was working for—wouldn’t that be a step backwards? With some research and input from friends, I realized that Danaher had the potential for huge success, and I wanted to be part of it. It turned out to be the best and most rewarding career decision of my life … but I almost didn’t consider it because of some rigid thinking.
Do you have different advice for someone at the midpoint of their career?
In mid-career, it can feel like the workload is overwhelming, and it’s often at the same time that family obligations are at their peak. We tend to just put our heads down, focus on the task list, and try to make it through the day. My advice is to carve out time, at least weekly, to evaluate how you’re doing on the multidimensional aspects of a successful career. At AWESOME, we developed the “Reach Framework” as a guide for taking action in all of these dimensions:
Reach Up to elevate the role of supply chain,
Reach Out to build strategic connections,
Reach In to strengthen your competence,
Reach Back to help early-career people advance,
Reach Across to engage allies as advocates of change.
If you are regularly “reaching” in all these directions, your career will soar!
NAME: Heather Sheehan
TITLE: owner of Crispy Concepts, LLC; instructor with Penn State University; board member and adjunct faculty with University of Denver’s Transportation & Supply Chain Institute
OTHER EXPERIENCE: Executive Director of AWESOME; Director of Member Engagement and Sponsorships, AWESOME; Vice President Indirect Sourcing and Logistics for Danaher Corp.; various leadership positions in procurement, logistics and marketing with Honeywell, Union Pacific Corp. and NCR Corp.
CSCMP EXPERIENCE: Member of the Board of Directors for 11 years; past chair of the board; frequent speaker at educational events and contributor to CSCMP publications
EDUCATION: bachelor’s degree from Penn State University; master’s degree from Carnegie Mellon University
RECOGNITION: Union Pacific Railroad High Performer Award, “Supply Chain Pro to Know” by Supply & Demand Chain Magazine; DC Velocity Rainmaker; AWESOME Legendary Leadership Award; DSC Logistics Thinkers and Movers Award; University of Tennessee Global Supply Chain Institute Outstanding Women in Supply Chain Award
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."