Miquel Serracanta and Eduardo Vargas are dedicated to representing and strengthening CSCMP's international membership. Here's why they think that's important.
Contributing Editor Toby Gooley is a freelance writer and editor specializing in supply chain, logistics, material handling, and international trade. She previously was Editor at CSCMP's Supply Chain Quarterly. and Senior Editor of SCQ's sister publication, DC VELOCITY. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Spend some time with Miquel Serracanta and Eduardo Vargas, and you can't help but be inspired by their energy and enthusiasm. The two—Serracanta from Barcelona, Spain, and Vargas, a native of Peru now living in Los Angeles—are passionate about strengthening the Council of Supply Chain Management Professionals as a global organization. They hope to achieve that in two ways: by getting more international supply chain professionals involved in CSCMP and by helping CSCMP provide value to its international members, who hail from 72 countries outside the United States.
Both are well suited for pursuing those objectives. The gentlemanly Serracanta, a former supply chain vice president with Sara Lee's European bakery operations, is a supply chain advisor leading his own company and director of the Supply Chain Masters program at EAE Business School's Barcelona campus. He volunteers for CSCMP as president of the Spain Roundtable, regional advisor for Europe, and chair of the Global Marketing Process Team. Vargas, a client retention and expansion manager with Hellmann Worldwide Logistics, has been involved in international logistics operations and supply chain technology for 18 years. His experience working with multinational companies in South America, the United States, Asia, and Europe makes him completely at home in today's global business environment. Prior to moving to the United States, he was a CSCMP advisor for Latin America.
Supply Chain Quarterly Editor Toby Gooley asked Serracanta and Vargas about their experiences as international CSCMP members and how the organization and members around the world can support each other.
Miquel Serracanta
Eduardo Vargas
You both have been very active in CSCMP at the local, regional, and international levels. Why do you volunteer so much time and effort beyond your own local roundtable? Miquel Serracanta: Six years ago, I joined CSCMP as a volunteer to revitalize the Spain Roundtable, which was inactive. I was honored with the role of president, leading an extraordinary team of supply chain professionals. They were excited to be involved with reactivating the organization, and the degree of passion, energy, and commitment was amazing. Since then, I've become progressively more involved with this global organization. Participating in a roundtable board as a volunteer is a unique experience that increases both your personal and professional value with a global scope. Sharing supply chain knowledge and learning from colleagues is really one of the most amazing things you can do in our global world today.
Name: Miquel Serracanta Title and Organization: Founder and chief executive officer, Solutions & Decisions, an advisory services company specializing in supply chain optimization; director of Supply Chain Masters programs at EAE Business School, Barcelona Campus; President, CSCMP Spain Roundtable, European Regional Advisor, and Global Marketing Process Team Chair Education: Degree in Business Administration, Universitat Ramón Lull; Master of Business Administration from ESADE (Barcelona); certified SCPro Level One and Level Two by CSCMP; certified CSCP by APICS Business Experience: More than 23 years of professional experience; 16 years in various positions in operations, logistics, and distribution at Sara Lee European Bakery Division, including vice president of purchasing and supply chain and vice president of sales & operations planning CSCMP Member: Since 2010
Name: Eduardo Vargas Title and Organization: Client Retention and Expansion Manager with Hellmann Worldwide Logistics, a global logistics services provider Education: Degree in Industrial Engineering from PontifÃcia Universidad Católica del Peru; licensed Professional Engineer; Master of Business Administration from University of Maryland as a Fulbright Foreign Graduate Student; certified SAP Supply Chain Management consultant; certified CSCP by APICS Business Experience: Eighteen years of experience, including regional managing director, Colombia and Peru, with a global third-party logistics company; consulting manager Latin America; senior consultant based in the U.S.; previously regional advisor, Latin America for CSCMP CSCMP Member: Since 2008
Eduardo Vargas: During the last nine years, I have lived in five different cities across three countries. Every time I moved I looked for strong personal and professional connections in order to convert that "new place" eventually into a home. Participating actively as a CSCMP roundtable board member has helped me greatly throughout those years. I have witnessed how the organization has global standards and attracts extremely talented people around the world.
With CSCMP I was vice president, marketing for the Peru Roundtable, president of the Bogota (Colombia) Roundtable, information technology chair for the Southern California Roundtable, and advisor for Latin America. I became more involved every time after seeing the positive impact of events, growth, and collaboration at the local and regional roundtable levels.
Why is it important for an organization like CSCMP to support and increase its international membership? MS: Being global is never easy for any organization or company. For a group like CSCMP, whose local presence depends on volunteer boards in every country, it is more difficult but mandatory.
Increasing CSCMP's global presence is one of the five strategic initiatives our organization has for 2016, because networking with global supply chain professionals is a major value that we provide to our members. Taking advantage of connections among local roundtables led by member volunteers is the easiest and fastest way to share and acquire supply chain knowledge, education, and services.
EV: Every country has its own, mostly local logistics organizations that are strongly oriented toward networking and are closely related to the local government, ports, transportation, unions, and so forth. Then there are global organizations that are focused on certifications and knowledge. CSCMP offers the best of both worlds: a global and at the same time local organization that is able to provide strong local networking but also go beyond that to global networks of supply chain professionals and academics who are there to support local initiatives. CSCMP also offers the SCPro certification to reinforce knowledge and global supply chain standards. All these are ultimately articulated in the CSCMP Annual Conference, where people from all around the world meet to share connections and real-life knowledge. International membership allows CSCMP to be a truly global organization instead of only regional or local to the U.S.
Are you communicating with international members about what they want to get from their membership in CSCMP, and what are you learning from them? MS: Delivering value to all of its customers and stakeholders is a must for CSCMP, as for any organization, so we plan and deploy our global strategies accordingly at every local roundtable. As regional advisors, it is a must for us to listen to the "voice of the customer" in each of the regions we're serving (Europe in my case) and understand what they're asking CSCMP to deliver to them.
In order to capture this information, I'm participating in the organization and execution of local events for the Spain Roundtable. Since last year, we've modified our national event to make it international (European in scope), and we now invite members from other countries to attend. The event, which is now held in English every May, is one of the ways in which I connect with European supply chain professionals and learn from them. They're eager to discover innovations that will deliver more value to their supply chain function, understand how they can improve their talent management, and learn from best practices on key planning and execution activities. I'm also very active on social media (LinkedIn and Twitter) so we can connect globally with supply chain professionals who are interested in sharing and learning about our profession, which helps all of us to be continuously learning and up-to-date.
EV: International members become really engaged when they get access to a strong local portfolio of products, events, and activities from CSCMP. This incentivizes them to participate more actively in those local events and get the most out of their membership. Local offerings could include supply chain events where speakers discuss local hot topics; port, plant, and facility visits; executive education programs; and others. All this, obviously, is on top of the already strong global CSCMP product portfolio that includes the annual conference in the U.S., SCPro certification, and tiered membership, which offers access to supply chain material and research sponsored by CSCMP.
How can supply chain professionals in different countries benefit from sharing information and ideas with each other? MS: Sharing is in the DNA of every roundtable board volunteer. Their passion and energy are spread through their events and communications, and they're always willing to give before being asked. Individual benefits for supply chain professionals come right after sharing their information and ideas, as others will respond rapidly with more ideas and/or information, building knowledge for the benefit of all members of the supply chain community.
There are online ways of sharing, including social media, CSCMP's website, and e-mail. But face-to-face activities like local, regional, and global events where you can interact in person with your supply chain colleagues from all over the globe are extremely valuable.
EV: Sharing is key to personal, professional, and business evolution. In my experience organizing supply chain-related educational and networking events, I've witnessed how a simple session could bring ideas about solutions for real-life supply chain problems from the audience. Sharing information across countries can also trigger or strengthen collaboration between public and private sectors on a specific topic like infrastructure or promotion of a particular industry. Information and knowledge sharing can even produce the inception and implementation of business partnerships. The possibilities are endless, and it is extremely rewarding to hear that this happens as a consequence of events and activities organized by CSCMP.
Container imports at U.S. ports are seeing another busy month as retailers and manufacturers hustle to get their orders into the country ahead of a potential labor strike that could stop operations at East Coast and Gulf Coast ports as soon as October 1.
Less than two weeks from now, the existing contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance covering East and Gulf Coast ports is set to expire. With negotiations hung up on issues like wages and automation, the ILA has threatened to put its 85,000 members on strike if a new contract is not reached by then, prompting business groups like the National Retail Federation (NRF) to call for both sides to reach an agreement.
But until such an agreement is reached, importers are playing it safe and accelerating their plans. “Import levels are being impacted by concerns about the potential East and Gulf Coast port strike,” Hackett Associates Founder Ben Hackett said in a release. “This has caused some cargo owners to bring forward shipments, bumping up June-through-September imports. In addition, some importers are weighing the decision to bring forward some goods, particularly from China, that could be impacted by rising tariffs following the election.”
The stakes are high, since a potential strike would come at a sensitive time when businesses are already facing other global supply chain disruptions, according to FourKites’ Mike DeAngelis, senior director of international solutions. “We're facing a perfect storm — with the Red Sea disruptions preventing normal access to the Suez Canal and the Panama Canal’s still-reduced capacity, an ILA strike would effectively choke off major arteries of global trade,” DeAngelis said in a statement.
Although West Coast and Canadian ports would see a surge in traffic if the strike occurs, they cannot absorb all the volume from the East and Gulf Coast ports. And the influx of freight there could cause weeks, if not months-long backlogs, even after the strikes end, reshaping shipping patterns well into 2025, DeAngelis said.
With an eye on those consequences, importers are also looking at more creative contingency plans, such as turning to air freight, west coast ports, or intermodal combinations of rail and truck modes, according to less than truckload (LTL) carrier Averitt Express.
“While some importers and exporters have already rerouted shipments to West Coast ports or delayed shipping altogether, there are still significant volumes of cargo en route to the East and Gulf Coast ports that cannot be rerouted. Unfortunately, once cargo is on a vessel, it becomes virtually impossible to change its destination, leaving shippers with limited options for those shipments,” Averitt said in a release.
However, one silver lining for coping with a potential strike is that prevailing global supply chain turbulence has already prompted many U.S. companies to stock up for bad weather, said Christian Roeloffs, co-founder and CEO of Container xChange.
"While the threat of strikes looms large, it’s important to note that U.S. inventories are currently strong due to the pulling forward of orders earlier this year to avoid existing disruptions. This stockpile will act as an essential buffer, mitigating the risk of container rates spiking dramatically due to the strikes,” Roeloffs said.
In addition, forecasts for a fairly modest winter peak shopping season could take the edge off the impact of a strike. “With no significant signs of peak season demand strengthening, these strikes might not have as intense an impact as historically seen. However, the overall impact will largely depend on the duration of the strikes, with prolonged disruptions having the potential to intensify the implications for supply chains, leading to more pronounced bottlenecks and greater challenges in container availability, " he said.
A coalition of freight transport and cargo handling organizations is calling on countries to honor their existing resolutions to report the results of national container inspection programs, and for the International Maritime Organization (IMO) to publish those results.
Those two steps would help improve safety in the carriage of goods by sea, according to the Cargo Integrity Group (CIG), which is a is a partnership of industry associations seeking to raise awareness and greater uptake of the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (2014) – often referred to as CTU Code.
According to the Cargo Integrity Group, member governments of the IMO adopted resolutions more than 20 years ago agreeing to conduct routine inspections of freight containers and the cargoes packed in them. But less than 5% of 167 national administrations covered by the agreement are regularly submitting the results of their inspections to IMO in publicly available form.
The low numbers of reports means that insufficient data is available for IMO or industry to draw reliable conclusions, fundamentally undermining their efforts to improve the safety and sustainability of shipments by sea, CIG said.
Meanwhile, the dangers posed by poorly packed, mis-handled, or mis-declared containerized shipments has been demonstrated again recently in a series of fires and explosions aboard container ships. Whilst the precise circumstances of those incidents remain under investigation, the Cargo Integrity Group says it is concerned that measures already in place to help identify possible weaknesses are not being fully implemented and that opportunities for improving compliance standards are being missed.
By the numbers, overall retail sales in August were up 0.1% seasonally adjusted month over month and up 2.1% unadjusted year over year. That compared with increases of 1.1% month over month and 2.9% year over year in July.
August’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.3% seasonally adjusted month over month and up 3.3% unadjusted year over year. Core retail sales were up 3.4% year over year for the first eight months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023.
“These numbers show the continued resiliency of the American consumer,” NRF Chief Economist Jack Kleinhenz said in a release. “While sales growth decelerated from last month’s pace, there is little hint of consumer spending unraveling. Households have the underpinnings to spend as recent wage gains have outpaced inflation even though payroll growth saw a slowdown in July and August. Easing inflation is providing added spending capacity to cost-weary shoppers and the interest rate cuts expected to come from the Fed should help create a more positive environment for consumers in the future.”
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.