Paul Dittmann, Ph.D., is Executive Director of the Global Supply Chain Institute at the University of Tennessee Knoxville's Haslam College of Business.
As one who has spent a long time in industry and a significant amount of time in the academic world, I am convinced that the following is an important truth: The academic community is trying to reach out to the business world, and business would be well-served by taking greater advantage of those opportunities for learning and collaboration.
Some personal background will help to explain how I reached this conclusion. After graduating with a Ph.D. in Industrial Engineering in 1973, I decided that the business world, not the academic world, was the place for me. I yearned for the opportunity to tackle "real world" problems, and that is exactly what I did in a business career that spanned more than three decades. At times I had staff duties, such as corporate planning; at other times, I found myself in a line position, including vice president of logistics for Whirlpool Corporation, under pressure to achieve tough, "stretch" goals.
During those years, I had a reasonable amount of exposure to the academic community. Several professors provided good, practical advice that helped me address issues my company was facing, but I often wondered if their willingness to collaborate with business was the exception rather than the rule. Over the years, moreover, I heard and wondered about stereotypes and myths regarding the academic community in general.
Those stereotypes did not influence me when I decided to leave industry after 32 years and move to the academic world; I simply wanted a second career in teaching and consulting. Currently, I manage Supply Chain Forums at the University of Tennessee's business school and teach on its logistics faculty. After three years of working very closely with a wide range of faculty, I feel that I am in a good position not only to separate the myths from reality but also to help bridge the gulf between industry and academia.
How business perceives academia
In general, businesspeople are impressed with many of the academics with whom they work. Practitioners come in contact with the academic community in various ways, including at industry conferences, in executive-education sessions, or through consulting relationships. In spite of positive interactions like these, practitioners often develop notions about professors that are based on a number of misunderstandings.
Businesspeople intuitively understand that academics' key performance indicators (KPIs) are significantly different than their own, and that leads many of them to buy into myths regarding the academic community, such as:
Professors care more about publishing in scholarly journals than about real business problems.
Professors care more about research than about teaching students. Star professors are never in the classroom.
Professors have a cushy lifestyle and do not understand the intense demands that businesspeople operate under.
The concept of tenure makes no sense, and it may result in tenured faculty "retiring on the job."
The view from campus
In my own environment at the University of Tennessee, at least, I have found that, in the vast majority of cases, such stereotypes are indeed untrue. The faculty is passionate about teaching, and professors care intensely about their responsibility to prepare students for the future. Their research focuses on practical, real-world problems. The results of that research, however, are not always fully communicated to practitioners. After all, few practitioners read the academic journals.
Most faculty members work extremely hard. In fact, the work pace is similar to that of the business world. Pressures to achieve tenure are intense, and with good reason: Tenure is a traditional step along the academic career path and is definitely not about "retiring on the job."
As a former practitioner, the biggest surprise for me has been the amazing degree of entrepreneurialism that exists among many faculty members. Frankly, it far exceeds that found in much of the corporate world. I think this stems in part from the freedom academics have when it comes to managing their time. In my industry days, I had to attend 35 to 40 meetings a week—an average of seven to eight meetings each day! Far fewer meetings take place in the academic world, which allows faculty greater control over their schedules.
In my opinion, when motivated people have more control over their environment, they become more entrepreneurial. No one works harder than a small business owner. In many ways, university faculty members are in a similar position. They have the freedom to pursue their interests, and that becomes a huge motivator that drives them to work very hard.
Furthermore, it has been surprising to me to see how their research interests align to a great extent with the interests of the business community. For business school faculty, industry is their laboratory. In fact, some universities have developed a wide range of programs that allow them to integrate with the business community, and these are described below.
Universities reach out to business
Business school faculty members know that the relevance of their teaching and research depends on staying close to the business community. A number of universities therefore reach out to business and offer practitioners many opportunities such as:
Executive education
Industry/academic forums and consortia
Sponsored projects and consulting assignments
University research
Advisory councils and other collaborative efforts
to prepare students for the business world
Let's start with executive education, which is offered by business schools at many universities. A lot of competition exists in the executive-education business; the programs that survive are of extremely high quality and are responsive to the informational needs of industry.
For example, the University of Tennessee offers seven seminars just in the supply chain area. At these highly interactive sessions, participants not only are exposed to the latest thinking in the field but also have the opportunity to discuss common problems with their peers from a wide range of industries and organizations. This results in a very powerful benchmarking experience.
In addition, some companies ask universities to develop and conduct tailored executive-education programs. These programs can train hundreds of people in supply chain excellence for an individual company.
Along with executive training, a number of universities create sponsored forums or consortia, which may be attended by more than 100 people from dozens of companies. The purpose of these organizations is to foster a close relationship between the business and the academic communities for mutual benefit. They do that by bringing together executives for presentations and group discussions about new concepts in supply chain management. Attendees, meanwhile, take back valuable ideas and concepts they can apply in their own companies.
Businesspeople have no tolerance for activities that do not add value. As a result, companies look at these events not as a charitable cause but as an activity from which they expect to receive a measurable return on their investment. Therefore, the value proposition becomes very important for the survival of these forums.
A value proposition for industry/academic forums may include:
Several seats at the forum meetings for the sponsors' employees, customers, and/or suppliers
Access to undergraduate and MBA supply chain students for recruiting and internships
Special attention and information from the faculty
Benchmarking opportunities with other forum sponsors
"First look" privileges at research before it is published
Discounted pricing on supply chain executive-education seminars, supply chain assessments, and special project work conducted by the faculty
Members-only access to white papers and technical reports
When I was at Whirlpool, the company decided to join the supply chain forums at the University of Tennessee. We realized a significant return on that investment of time and money. Every time I returned from a meeting, I had a list of new ideas and things to do. Some of these led to major business benefits for Whirlpool. For example, one concept I learned about at a forum allowed the company to make a documented reduction of $39 million in inventory. It only takes one idea like that to yield a continuing return on a company's investment.
Companies sometimes ask a university's logistics and supply chain faculty to tackle specific projects because of the faculty's expertise in a particular area. These and other consulting assignments, which are commissioned, are sometimes referred to as sponsored projects.
One example of a sponsored project is a supply chain audit, which involves an in-depth analysis of a company's supply chain and specific recommendations for improvement. This type of project is quite common; over the past 18 months, for instance, University of Tennessee faculty members have done supply chain audits for eight major companies. These audits allow the sponsors to benefit from the faculty's knowledge of best practices; at the same time, they help the faculty stay close to the issues faced by industry today.
In general, universities work with companies on a wide range of problems in the supply chain area. Faculty can help the business community address such questions as:
How should we design our warehouse network, especially in this era of rapidly rising transportation costs?
Can we reduce inventory levels while still maintaining a high level of customer service?
How should we organize our supply chain function?
Our transportation costs are spinning out of control. How can we cut those costs?
How should we go about outsourcing our warehousing operations to a third-party logistics company (3PL)?
How should we implement a successful global sales and operations planning (S&OP) process?
We think we're pretty good in the supply chain area. Can you assess us and help us move to an even higher level?
Projects like these clearly demonstrate that universities are partnering with industry on the critical issues facing supply chain professionals today. All of this work, moreover, helps keep university research relevant. At Tennessee, for example, a research team currently is analyzing the results of the supply chain audits mentioned earlier. The database the team develops will provide data for a number of published articles.
Some academic organizations use web sites to provide businesses with access to research, including complete results, summaries, and even yet-to-be published research. However, I believe that universities could do an even better job of communicating their research results to the business community.
Educating future leaders
The fundamental purpose of university business schools is to educate the business leaders of tomorrow. Advisory councils that bring together business representatives and solicit their advice on what students need to know can help universities make their product (that is, students) more valuable to industry.
This direct transfer of knowledge to students is facilitated when people with strong business résumés teach alongside the other faculty. As mentioned before, I bring 32 years of industry experience to my position on the supply chain faculty. Another example is David Ecklund, a former vice president and co-founder of Caterpillar Logistics, who also teaches in our logistics programs. The combination of experienced practitioners with leading professors and researchers makes a powerful educational package.
Although a number of fine programs annually graduate well-trained supply chain students, a shortage of supply chain talent still exists. This shortage has companies competing for talent, and we find that graduates with logistics and supply chain degrees are among the most sought-after on campus. That is one reason why it is important to increase the interaction between students and the business community through such opportunities as job fairs and receptions at industry-academic events: Doing so will help companies find the supply chain talent they need now and for the future.
In addition, companies can financially sponsor Ph.D. students' research for their dissertations and make their operations available as a research subject. When I was at Whirlpool Corporation, we sponsored several dissertations. Such collaboration becomes a true win/win situation: The university and students clearly benefit from this sponsorship, and the company gains by receiving an in-depth analysis of a critically important problem.
Why not seize the opportunity?
If there are so many ways for business and academia to collaborate and learn from each other, then why are so many supply chain practitioners failing to seize these opportunities? In my observation, it's mostly a matter of time pressures.
The business world changed quite a bit during the 32 years I was there. As the years went by, both the pace and the work intensity picked up dramatically. Now I talk with people from different companies almost every day, and I know that trend continues. They tell me they often feel overwhelmed by the number of meetings, e-mails, and voice mails they must deal with.
That's why I believe that time pressure is the primary reason more businesspeople do not take advantage of the opportunities to partner with the academic community. The financial cost of participating in university programs is modest, but it is overshadowed by the crush of other responsibilities.
The practitioners who do work with the academic community deeply believe that they must make the time to "sharpen their axes." Otherwise, it will get harder and harder to meet their companies' tough, demanding objectives. As one executive said to me, "If you always do what you always did, you'll always get what you always got." They know that the breakthrough ideas come from disengaging from the daily battle and taking the time to expose themselves to new ways of thinking. That belief becomes the essence of a university-business partnership and the foundation of a mutually beneficial experience for companies, universities, and students.
My experience suggests that universities and businesses should aggressively adopt several practices that would benefit everyone. First, senior management should insist that each member of an organization have a personal development plan. Without such a plan, their staffs' skills and knowledge will quickly become outdated. Second, universities must do a better job of reaching out and making their programs more visible to the business community. And third, universities should be mindful of the time crunch facing business executives and leverage technology and distance-learning opportunities that will help executives learn efficiently. Nothing, however, beats the value of face-to-face communication, and therefore the time a businessperson spends on campus must be extremely efficient and productive.
The business community will miss a huge opportunity if it doesn't leverage the valuable resources available in the academic sector. But if universities reach out to strengthen connections with industry and businesses embrace those opportunities, the benefit to both will be felt now and far into the future.
The venture-backed fleet telematics technology provider Platform Science will acquire a suite of “global transportation telematics business units” from supply chain technology provider Trimble Inc., the firms said Sunday.
Trimble's other core transportation business units — Enterprise, Maps, Vusion and Transporeon — are not included in the proposed transaction and will remain part of Trimble's Transportation & Logistics segment, with a continued focus on priority growth areas following completion of the proposed transaction.
Terms of the deal were not disclosed but as part of this agreement, Colorado-based Trimble will become a shareholder in Platform Science's expanded business. Specifically, Trimble will have a 32.5% stake in the newly expanded global Platform Science business and will receive a Platform Science board seat. The company joins C.R. England, Cummins, Daimler Truck, PACCAR, Prologis, RyderVentures, and Schneider as a key strategic investor in Platform Science along with financial investors 8VC, Activant Capital, BDT & MSD Partners, Softbank, and NewRoad Capital Partners.
According to San Diego-based Platform Science, the proposed transaction aims to enhance driver experience, fleet safety, efficiency, and compliance by combining two cutting-edge in-cab commercial vehicle ecosystems, which will give customers access to more applications and offerings.
From Trimble customers’ point of view, they will continue to enjoy the benefits of their Trimble solutions, with the added flexibility of the Virtual Vehicle platform from Platform Science. That means Virtual Vehicle-enabled fleets will receive access to the Virtual Vehicle Marketplace, offering hundreds of new and expanded applications, software, and solution providers focused on innovating and improving drivers' quality of life and fleet performance.
Meanwhile, Platform Science customers will enjoy the added choice of Trimble's remaining portfolio of transportation solutions which will be available on the Virtual Vehicle platform, the partners said.
"We believe combining our global transportation telematics portfolio with Platform Science's will further advance fleet mobility and provide our customers with a broader portfolio of solutions to solve industry problems," Rob Painter, president and CEO of Trimble, said in a release. "Increased collaboration between the new Platform Science business and Trimble's remaining transportation businesses will enhance our ability to provide positive outcomes for our global customers of commercial mapping, transportation management, freight procurement, and visibility solutions. This deal will result in significant synergies along with tremendous opportunities for employees to continue to grow in a more-competitive business."
The acquisition comes just five months after Platform Science raised $125 million in growth capital from some of the biggest names in freight trucking, saying the money would help accelerate innovation in the commercial transportation sector.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
Economic activity in the logistics industry expanded in August, though growth slowed slightly from July, according to the most recent Logistics Manager’s Index report (LMI), released this week.
The August LMI registered 56.4, down from July’s reading of 56.6 but consistent with readings over the past four months. The August reading represents nine straight months of growth across the logistics industry.
The LMI is a monthly gauge of economic activity across warehousing, transportation, and logistics markets. An LMI above 50 indicates expansion, and a reading below 50 indicates contraction.
Inventory levels saw a marked change in August, increasing more than six points compared to July and breaking a three-month streak of contraction. The LMI researchers said this suggests that after running inventories down, companies are now building them back up in anticipation of fourth-quarter demand. It also represents a return to more typical growth patterns following the accelerated demand for logistics services during the Covid-19 pandemic and the lows of the recent freight recession.
“This suggests a return to traditional patterns of seasonality that we have not seen since pre-COVID,” the researchers wrote in the monthly LMI report, published Tuesday, adding that the buildup is somewhat tempered by increases in warehousing capacity and transportation capacity.
The LMI report is based on 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).
That hiring surge marks a significant jump in relation to the company’s nearly 17,000 current employees across North America, adding 21% more workers.
That increase is necessary because U.S. holiday sales in 2023 increased 3.9% year-over-year as consumer spending grew even amidst uncertain economic times and trends like inflation and consumer price sensitivity. Looking at the coming peak, a similar pattern is projected for this year, with shoppers forecasted to drive a 4.8% increase in holiday retail sales for 2024, Geodis said, citing data from Emarketer.
To attract the extra workforce, Geodis says it will offer competitive wages, peak premium pay incentives, peak and referral bonuses, an expedited payment option, and flexible schedules. And it’s using an AI-powered chatbot named Sophie to serve as a virtual recruiting assistant.
“We acknowledge the immense responsibility we have to our customers to deliver exceptional service every day, and this is especially true during peak season,” Anthony Jordan, GEODIS in Americas Executive Vice President and Chief Operating Officer, said in a release. “Because peak season is the most business-critical sales period of the year for many of our retail clients, expanding our workforce is vital to ensure we have a flexible, dynamic team that can handle anticipated surges in demand.”