Although still relatively new to their careers, the recipients of this year's CSCMP Emerging Leader Award are already making an impact on the supply chain profession.
Now in its fourth year, the Council of Supply Chain Management Professionals' Emerging Leader Award has proved once again that the future of supply chain management is in excellent hands. Despite their relatively short time in the profession, this year's award recipients—Diego De la Garza, Brian Jacobson, and Paul Rohrbaugh—have made significant contributions to the field while focusing on solving real-world problems. The three were chosen because of their personal career accomplishments and their record of achievement in the supply chain profession, as evidenced by awards, peer recognition, and recommendations.
Their current positions illustrate how varied the profession is today. De la Garza is an associate director at Source One Management Services, a provider of procurement services, while Jacobson is a strategic account manager at the third-party logistics company C.H. Robinson. Rohrbaugh, for his part, co-founded the simulation consulting and training company Sterling Simulation at the age of 26, after working as a process-improvement consultant at PepsiCo.
The award winners were honored at CSCMP's 2016 Annual Conference in Orlando, Florida. Before the conference, Supply Chain Quarterly Senior Editor Susan Lacefield asked them to reflect on their careers so far as well as their future aspirations. Her interviews with De la Garza and Jacobson appear below. (Rohrbaugh was unable to participate by press time; his interview will be published on our website at a later date.)
BRIAN JACOBSON
In addition to his role as a strategic account manager at C.H. Robinson, Jacobson manages the company's Global Accounts Center in Phoenix, Arizona. While at C.H. Robinson, he has worked on many customer projects, focusing on solution design, network optimization, transportation management, and merger integrations. Jacobson graduated from Arizona State University (ASU) in 2010 with a bachelor's degree in supply chain management. In 2015, he earned the APICS Supply Chain Professional designation.
What attracted you to supply chain management as a profession?
I enrolled at ASU as an engineering major, but midway through my second year I changed to supply chain. At the time, I felt like engineering would be too theoretical, and I wanted to do something that could make a more immediate impact within a company. My thoughts were cemented during my senior year at ASU when we partnered with Target for a case study focused on network optimization. The cross-functional nature of that case study, combined with the analytical approach to a solution, appealed to me and drove my excitement for the industry.
What surprised you about the supply chain field when you entered the workforce?
The thing that surprised me most was how few people in supply chain roles had degrees related to supply chain or logistics. Most of the people I was working with had entered these roles out of necessity, not because they were passionate about the industry. Supply chain as a science is still a very young discipline, which means that there's more opportunity for young professionals to be thought leaders within their organizations as well as within the industry.
Are there any projects or assignments you've worked on that you're particularly proud of?
Over the past seven years, I've had a chance to drive change in many of my clients' supply chains, but the most exciting one has been my most recent project. I began working with a health-care company in 2014, and over the past three years, I have been able to implement best practices and solutions to manage that organization's spend more effectively while simultaneously lowering their risk and managing through transformational changes within the customer and the industry.
If you were to speak to a college class of supply chain majors, what advice would you give them?
Learn as much as you can about the other business disciplines. Supply chain is as much about what happens in the boardroom as it is about what happens in the warehouse. Business acumen is a critical skill to have in order to be successful in today's world. Understanding what drives the decisions that CEOs are making gives you insight into what decisions you should be making to align with those decisions.
What advice would you give to companies looking to attract young supply chain professionals?
Millennials are looking to be able to drive a solution and control their own piece of the pie. Rotational programs where young professionals can learn different aspects of a company's supply chain are great tools to give millennials the background they need in order to take ownership of a piece of your supply chain. ... Top-performing young professionals will ask for larger and larger roles and responsibilities, and if you allow them to grow into those roles, you will be rewarded with an employee who is willing to do anything to improve your supply chain and help drive the bottom line.
Where do you see yourself 10 years from now?
I hope to be working with global companies to navigate through new regulations and technologies, developing solutions to help manage change and risk within their supply chains. In addition, I'd like to use my supply chain skills to help local charities optimize their logistics arms so they can be more effective in their communities.
DIEGO DE LA GARZA
As an associate director at Source One Management Services, De la Garza manages the provider's Chicago operations and leads its Nearshoring Advisory Practice. His experience includes direct materials, logistics, industrial supplies, information technology, professional services, and facilities in manufacturing, technology, pharmaceuticals, and financial services. The bilingual De la Garza graduated from Universidad La Salle, A.C., in Mexico and earned an MBA from La Salle University in Philadelphia, Pennsylvania.
What attracted you to supply chain management as a profession?
Early on, I sought a holistic education that wouldn't limit my focus to a single area. I pursued a dual degree in international business and commerce first, and then went for a dual master's degree in finance and management. During the course of my studies, I learned how the supply chain management function offered a well-defined value proposition within a business and across multiple levels of the organization. That kind of broad-reaching influence was really interesting to me.
What surprised you about the supply chain field when you entered the workforce?
The endless opportunity to generate tangible results and truly impact operations was incredible. Additionally, the environment constantly challenged me (and still does) to be creative. I found that supply chain presented the right conditions for me to thrive, even more than what I had initially expected. In particular, I enjoy how rapidly the supply chain is transforming—from the emergence of new technologies to the development of new best practices. The tremendous strategic relevance that supply chain, procurement, and sourcing practices have acquired continues to surprise me.
Are there any projects or assignments you've worked on that you're particularly proud of?
I'm especially proud of the development of Source One's Nearshoring and Global Sourcing practice. It began a few years back as a rather simple exercise for a client who needed to identify a competitive manufacturer of hand tools in Mexico. Through the project, however, we ended up establishing a new business relationship that lowered material and labor costs substantially and improved quality significantly. Today, I lead a practice that allows us to assist companies in transitioning and relocating their manufacturing operations to new locations worldwide. Our efforts help our clients expand to new markets and establish operations that are more efficient, competitive, and cost effective, while providing opportunities for new markets to develop, especially in my native Mexico.
If you were to speak to a college class of supply chain majors, what advice would you give them?
To realize the value their profession has, and that there is potential everywhere and endless opportunities to generate an impact. What we do with our craft, from within the organization, can go beyond efficient supply chains and streamlined processes. It can create opportunities for new businesses, increase diversity, and build bridges and strong relationships. I've negotiated millions of dollars of cost savings in my career, but the real reward has been in creating pockets of collaboration where they didn't exist before—and those produce more sustainable long-term benefits for the business. I'd also say that networking is crucial to collaboration and success, so they should surround themselves with people whose mission is to add value and with true mentors who seek to raise the bar without compromising value.
What advice would you give to companies looking to attract young supply chain professionals?
To create an environment that fosters creativity and that challenges people to use their skillset while presenting them with the opportunity to learn. ... I try to promote a culture of entrepreneurship, where people can self-start initiatives, collaborate, and take ownership of their work. As a result, we have a very talented pool of people who constantly feel accomplished and continue to thrive; they are key to our growth as a company that embraces challenge as part of its development. This model has clearly worked for us, and I would recommend any company to be creative in presenting young talent with a platform that promotes these values.
Where do you see yourself 10 years from now?
My goal is to continue to help my practice grow exponentially, and to become a driver for innovation within supply chain, procurement, and strategic sourcing. I envision a much more robust operation for our global practice that continues to bring new ideas and best practices to new and remote locations. The value proposition for supply chain is going to continue to evolve as technology and the worldwide business landscape shift—so we must necessarily evolve with it.
Companies in every sector are converting assets from fossil fuel to electric power in their push to reach net-zero energy targets and to reduce costs along the way, but to truly accelerate those efforts, they also need to improve electric energy efficiency, according to a study from technology consulting firm ABI Research.
In fact, boosting that efficiency could contribute fully 25% of the emissions reductions needed to reach net zero. And the pursuit of that goal will drive aggregated global investments in energy efficiency technologies to grow from $106 Billion in 2024 to $153 Billion in 2030, ABI said today in a report titled “The Role of Energy Efficiency in Reaching Net Zero Targets for Enterprises and Industries.”
ABI’s report divided the range of energy-efficiency-enhancing technologies and equipment into three industrial categories:
Commercial Buildings – Network Lighting Control (NLC) and occupancy sensing for automated lighting and heating; Artificial Intelligence (AI)-based energy management; heat-pumps and energy-efficient HVAC equipment; insulation technologies
Manufacturing Plants – Energy digital twins, factory automation, manufacturing process design and optimization software (PLM, MES, simulation); Electric Arc Furnaces (EAFs); energy efficient electric motors (compressors, fans, pumps)
“Both the International Energy Agency (IEA) and the United Nations Climate Change Conference (COP) continue to insist on the importance of energy efficiency,” Dominique Bonte, VP of End Markets and Verticals at ABI Research, said in a release. “At COP 29 in Dubai, it was agreed to commit to collectively double the global average annual rate of energy efficiency improvements from around 2% to over 4% every year until 2030, following recommendations from the IEA. This complements the EU’s Energy Efficiency First (EE1) Framework and the U.S. 2022 Inflation Reduction Act in which US$86 billion was earmarked for energy efficiency actions.”
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain.”
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.
Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.
As a measure of the potential economic impact of that uncertain scenario, transport company stocks were mostly trading down yesterday following Donald Trump’s social media post on Monday night announcing the proposed new policy, TD Cowen said in a note to investors.
But an alternative impact of the tariff jump could be that it doesn’t happen at all, but is merely a threat intended to force other nations to the table to strike new deals on trade, immigration, or drug smuggling. “Trump is perfectly comfortable being a policy paradox and pushing competing policies (and people); this ‘chaos premium’ only increases his leverage in negotiations,” the firm said.
However, if that truly is the new administration’s strategy, it could backfire by sparking a tit-for-tat trade war that includes retaliatory tariffs by other countries on U.S. exports, other analysts said. “The additional tariffs on China that the incoming US administration plans to impose will add to restrictions on China-made products, driving up their prices and fueling an already-under-way surge in efforts to beat the tariffs by importing products before the inauguration,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management solutions at Moody’s, said in a statement. “The Mexico and Canada tariffs may be an invitation to negotiations with the U.S. on immigration and other issues. If implemented, they would also be challenging to maintain, because the two nations can threaten the U.S. with significant retaliation and because of a likely pressure from the American business community that would be greatly affected by the costs and supply chain obstacles resulting from the tariffs.”
New tariffs could also damage sensitive supply chains by triggering unintended consequences, according to a report by Matt Lekstutis, Director at Efficio, a global procurement and supply chain procurement consultancy. “While ultimate tariff policy will likely be implemented to achieve specific US re-industrialization and other political objectives, the responses of various nations, companies and trading partners is not easily predicted and companies that even have little or no exposure to Mexico, China or Canada could be impacted. New tariffs may disrupt supply chains dependent on just in time deliveries as they adjust to new trade flows. This could affect all industries dependent on distribution and logistics providers and result in supply shortages,” Lekstutis said.