CSCMP'S roundtables are known for the excellent education programs and networking opportunities that they provide to volunteers and members globally. Yet little is known about the numerous charitable programs and projects they sponsor and the contributions these programs have made—and continue to make—to their communities.
In the United States, for example, the Dallas/Fort Worth Roundtable has collected useful items for new mothers for a large hospital in Dallas, and the Kansas City Heartland Roundtable has collected money to purchase teddy bears that local police officers can give to children who have been affected by crime or accidents.
Last December, the Arizona Roundtable, in conjunction with St. Mary's Food Bank Alliance and FedEx, sponsored a food drive aimed at feeding up to 40,000 people in the Phoenix area. The roundtable was responsible for delivering more than 8,200 pounds of food to the food bank.
In 2006, the Atlanta Roundtable raised nearly $3,000 in funds for victims of Hurricane Katrina. These contributions were inspired in part by the work of member Rob Nemchik, who is general manager of Porsche Logistics Services LLC, a wholly owned subsidiary of Porsche Cars North America. Nemchik was a speaker at the Atlanta Roundtable's February 2006 dinner meeting, and no one who attended could forget his impassioned plea to remember the victims of Hurricane Katrina. He also discussed his efforts to establish a private logistics supply chain that provided a nonprofit group in Pass Christian, Mississippi, with survival necessities immediately after the disaster.
Congratulations to our roundtables for jobs well done!
How does your supply chain measure up?
How do your supply chain processes compare to industry-leading practices? You can selfassess your company's supply chain skills by using CSCMP's Supply Chain Management Process Standards books. This series of six books identifies best practices in the areas of Plan, Source, Make, Deliver, Return, and Enable. The books are based on research conducted by the consulting firm Supply Chain Visions. Supply Chain Visions made more than 250 site visits to establish both minimum process standards and identify industry best practices.
These reference guides can help you identify process strengths and weaknesses. After performing this assessment exercise, you can then focus your attention on areas where improvement efforts will produce the most benefit.
Each individual book costs US $19.95 for CSCMP members, or US $99.95 for the complete set. To order the books, visit cscmp.org.
Recognize a life of service
Distinguished Service Award submission deadline extended to April 30
Do you have a colleague who exemplifies excellence and outstanding service to the development of the supply chain management (SCM) discipline? If so, nominate him or her for CSCMP's Distinguished Service Award (DSA), the highest honor for an individual's achievements in the supply chain profession.
To open the award up to more nominees, CSCMP has extended this year's submission deadline. Nominations will be accepted through Wednesday, April 30, 2008.
The DSA is given to an academic, consultant, or practitioner who exemplifies sustained, consistent, and excellent service to the supply chain management profession. The selected individual will have shown high integrity and moral principles throughout his or her professional career.
CSCMP's 2008 Distinguished Service Award Selection Committee will evaluate your nominee based on the following criteria:
distinguished record of contribution
recognition as a leader
recognition as an innovator
The nomination process includes submitting both a résumé and letters of recommendation for the nominee. If selected, your nominee would join the ranks of such supply chain luminaries as Michigan State University Professor Emeritus Donald J. Bowersox, Wal-Mart Chairman H. Lee Scott, Schneider Logistics Chairman Donald Schneider, and former Accenture Global Managing Partner William C. Copacino.
The DSA presentation will take place at CSCMP's Annual Global Conference 2008, to be held October 5?8, in Denver, Colorado, U.S.A. Visit cscmp.org for more information on how to nominate an outstanding candidate for CSCMP's 2008 Distinguished Service Award.
The word on warehousing
It's not every book that comes with an open invitation to contact the author. But that's precisely the commitment that Allan Howie has made in the workbook, Fundamentals of Warehousing, now available on CSCMP's web site (cscmp.org). Howie— who is also the director of continuing education and professional development for the Material Handling Industry of America—encourages readers to contact him directly with questions, comments, or suggestions for future editions.
Fundamentals of Warehousing covers the operations of a typical warehouse or distribution center. The book is divided into four sections that address the four main warehousing activities: 1) the movement of goods, 2) the storage of goods, 3) the control of goods, and 4) the protection of goods. Howie then explains the equipment, software, and fixtures needed to accomplish these activities. Readers will learn the reasons for having certain equipment available for warehouse personnel. Fundamentals of Warehousing also includes study questions at the conclusion of each chapter that reinforce the key concepts and test comprehension.
The Fundamentals of Warehousing workbook costs US $150 for CSCMP members and US $250 for nonmembers. Supplemental materials are available, and CSCMP is offering quantity discounts for nonprofit and educational institutions. To order the workbook, visit cscmp.org/marketing/feature-mar-08.asp.
Fundamentals of Warehousing is only one of the many books that members can purchase at a discounted rate on the CSCMP web site. Also available is the recently published book Start Pulling Your Chain! Leading Responsive Supply Chain Transformation, authored by Donald Bowersox and Nicholas LaHowchic. An excerpt of this book can be found on Page 72 of this issue. For details and order information on all of our publications, visit the CSCMP Store at cscmp.org.
New RFID research generates excitement
By Kathleen Hedland, CSCMP Director of Education and Research
The long line of people that stretched outside the warehouse on a cold January day looked like a crowd of customers ready to rush through opened doors to an incredible winter sale. In reality, they were there to attend a forum that was jointly sponsored by CSCMP and Volunteer Interindustry Commerce Solutions Association (VICS); the warehouse was actually the University of Arkansas's (UARK) Radio Frequency Identification (RFID) Lab. Once inside, they would be among the first to witness a hands-on demonstration of what could be one of the hottest trends to hit the apparel/footwear industry and beyond: item-level RFID.
The forum participants did not let the frigid temperatures deter their quest for the latest information on RFID for the retail industry. They were enthused and impressed by what they observed: a testing lab demonstrating the various types of readers that could be used in different applications, a sales-floor replica with varied products and merchandising scenarios, and exciting technology that can read passive tags placed on clothing and footwear from a distance of 50 feet (15 meters). During day two of the forum, these demonstrations were backed up by research presentations and real-world case studies from UARK's RFID Lab, Dillard's, American Apparel, and Wal-Mart.
The forum shared the results and implications of phase I and II of a collaboratively sponsored study, "Item-Level RFID: Future Direction—Current Status." The three-phase project took shape when VICS, a global supply chain organization dedicated to developing standard business guidelines, got word of the retail industry's interest in item-level tagging. VICS passed it along to CSCMP, Dillard's, and Procter & Gamble—all of which understood the potential of itemlevel tagging to improve managing, pricing, and locating inventory as well as offer other, far-reaching benefits. Subsequently, the University of Arkansas RFID Research Center was selected to conduct a feasibility study. CSCMP and VICS will publish and distribute the research results for phase I and II, which involved testing the feasibility of item-level tagging for apparel and footwear in laboratory and real-life applications.
The study marked a first for CSCMP, which traditionally has not been involved in retail-industry research. But our organization saw an opportunity to collaboratively sponsor supply chain research that would benefit a large industry segment and the customers it serves.
Participants are now turning to phase III of the study, which will focus on measuring the return on investment for item-level RFID tagging.
Be good to the earth
When the world's largest retailer starts asking its suppliers to cut down on packaging waste and produce more environmentally friendly products, it sends a clear signal: "Green" supply chain management is no longer a fringe issue, it's becoming a front-and-center concern.
If you need more information about how to incorporate environmentally responsible practices into your supply chain, we can help. CSCMP is joining forces with the Warehousing Education and Research Council (WERC) and the International Warehouse Logistics Association (IWLA) to create a conference that will shed some light on this topic.
On June 9 and 10 in Sacramento, California, U.S.A., "Greening the Supply Chain" will bring together government regulators, supply chain service providers, and practitioners to share practical knowledge and investigate possible solutions for building sustainable supply chains. The conference incorporates both educational sessions and a technology showcase. Speakers will address important questions such as: Where can you find green solutions? How do you integrate green into your operations? Can going green actually produce a profit? What environmental regulations do you need to be aware of?
For more information about the "Greening the Supply Chain" conference and technology exhibits, visit www.greeningthesupplychain.com.
Your facility, our faculty
Didn't make it to the Annual Global Conference in Philadelphia last year? Missed one of our other industry-leading events? Don't forget that CSCMP can come to you!
CSCMP On-Site Education offers professional development workshops hosted by top subject-matter experts from CSCMP's global database of 9,000 members, right in your place of business. On-Site Education workshop topics can be tailored for your industry, supply chain function, or specific issues facing your company.
Courses available include:
Fundamentals of Supply Chain Management: An introductory workshop covering the tactical aspects of supply chain operations
Executive Issues of Supply Chain Management: A seminar that looks at the strategic aspects of supply chain planning and management
Global Supply Chain Management: An introductory workshop that focuses on supply chain planning and execution in a global environment
Supply Chain Management Collaboration: An interactive program that defines meaningful collaboration and details how and why such relationships can be created
Relationships Management: An introductory course that covers the basic concepts underlying all relationships, with specific attention to collaboration
Application of Balanced Scorecard: A seminar that teaches how to develop and implement a balanced scorecard
Activity-Based Costing for Supply Chain Management: An interactive seminar that addresses the basic concepts underlying activity-based costing, with a specific focus on the procedures for assigning costs to activities, products, and services
For information, contact Kathleen Hedland, Director of Education and Research, by sending an e-mail to
or by calling +1 630.645.3463.
Two new workshops announced
CSCMP continues to expand its educational offerings with two new seminars: Performance-Based Logistics for Outsourced Supply Chain Operations and a Process Standards Workshop.
It's a fact that a supply chain that is well aligned with its suppliers, trading partners, and transportation providers will be more productive. The Performance-Based Logistics (PBL) program will outline a new approach that can help improve traditional outsourcing relationships by making suppliers accountable. PBL "buys" outcomes—not individual parts or service transactions— which are outlined in typical third-party logistics (3PL) contracts. The Department of Defense, for one, believes that this approach is the wave of the future and has recently adopted it for managing its logistics service providers.
In this seminar, instructors Kate Vitasek, managing partner of the consulting firm Supply Chain Visions, and Karl Manrodt, associate professor at Georgia Southern University, will outline the steps for implementing PBL with suppliers and partners. The program will be held twice at CSCMP's offices in Lombard, Illinois, on May 19, 2008, and Aug. 13, 2008. The cost for CSCMP members is US $450.
The new Process Standards Workshop is based on CSCMP's Supply Chain Management Process Standards books, which help readers selfassess their internal processes, define minimum performance expectations, and enable process benchmarking. The course will provide a structured approach for assessing supply chain improvement opportunities and a framework for evaluating the initiatives. This process will help participants eliminate wasted time and money by identifying potential gaps in their processes. Each participant will receive the full set of Process Standards books.
Supply Chain Visions consultants Kate Vitasek and Mike Ledyard will run the program, which will be offered May 8?9, 2008, and August 14?15, 2008, in Lombard, Illinois. CSCMP members can take the course for the discounted rate of US $650.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
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).
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”