Here's our roundup of events at the Council of Supply Chain Management Professionals' annual CSCMP EDGE 2019 conference held in September in Anaheim, California.
Rick Blasgen, CSCMP's president and chief executive officer, speaks during the opening session at EDGE on Monday, September 16 keynote. Photo courtesy of Tessa Schutz from Kranbox Video & Photography.
With its focus on cutting-edge technologies, leadership development, and industry disruptors, the Council of Supply Chain Management Professionals' annual conference lived up to its new name: CSCMP EDGE. Attendees at the event, held in Anaheim, California, USA, in September, represented 39 countries and all facets of the supply chain. They came both to gain a glimpse of the future of the discipline and to find solutions that they could implement today. For as CSCMP President and CEO Rick Blasgen (at right) said, "Being a supply chain professional means having half of your brain on the future and half on routing freight."
While there, attendees enjoyed three days of educational seminars, the annual Academic Research Symposium, site visits, networking receptions, and the Supply Chain Exchange exposition, which showcased supply chain technologies, equipment, and services.
Not able to attend the conference this year or unable to sample everything that was offered? This roundup will help you fill in some of the gaps. (More articles and videos from the conference can be found at www.supplychainquarterly.com.)
CSCMP presents 2019 awards for excellence
Every year at its annual conference CSCMP honors individuals and organizations that are helping to push the supply chain discipline to new heights. The following are some of the recognitions given out this year.
The 2019 Distinguished Service Award was presented to Kathy Wengel, executive vice president and chief global supply chain officer at healthcare company Johnson & Johnson.
The 2019 inductees into CSCMP's Supply Chain Hall of Fame were Wengel; James Casey, founder and former chairman of UPS; Elizabeth Dole, politician, author, and the first woman appointed U.S. Secretary of Transportation; Eliyahu Goldratt, author, philosopher, and business leader who developed a management paradigm called "the theory of constraints"; and George Raymond Sr., inventor of the wooden pallet and pallet jack.
Anahi Arzaof consumer goods company Unilever and Parker Holcomb of the freight brokerage company CoLanereceived the 2019 Emerging Leader Award for outstanding supply chain professionals age 35 and under.
Maximilian Merathof theUniversity of Mannheim, Germany,won the Doctoral Dissertation Award for his paper"Decision Making in Supply Risk and Supply Disruption Management."
The Bernard J. La Londe Best Paper Award was given to Matthew A. Schwieterman, Thomas J. Goldsby, and Keely L. Croxton for "Customer and Supplier Portfolios: Can Credit Risks be Managed Through Supply Chain Relationships?"
Alex Scott of Michigan State University, Andrew Balthrop of University of Arkansas, and Jason Miller of Michigan State Universityreceived the E. Grosvenor Plowman Award for their research paper, "Did the Electronic Logging Device Mandate Reduce Accidents?"
The 2019 Teaching Innovation Award was presented to Stephen Rutner of Texas Tech University, Rebecca Scott of the University of North Carolina-Wilmington, and JefferyHarper of Texas Tech University for their submission entitled: "Revisiting Promoting the Value of Supply Chain Management to Future Business Leader."
CSCMP session sampler
With three keynote presentations and over 100 educational sessions, CSCMP EDGE 2019 attendees had a wide variety of educational opportunities to choose from. Here are highlights of just a few that sparked interest at the conference.
Retrain your brain. The more successful you are, the harder it can be to innovate. The problem, according to innovation expert Jeremy Gutsche, is that "everyone wants to innovate, but most people don't want to break from the proven path." Gutsche, chief executive officer of Trend Hunter, used an arsenal of humorous stories and personal anecdotes during the opening keynote session to explore what holds companies back from innovating and what they can do to overcome these traps.
Part of the reason for the resistance to change is neurological, says Gutsche. That's because the more expertise and experience you have doing something, the more your brain becomes hardwired into thinking that's the only way to do it. It becomes harder to force yourself to break old habits and offer new products, services, or processes.
Large established companies are not, however, doomed to failure. "Innovation is not fluffy," Gutsche says. "It is a science. You can retrain your brain."
The importance of culture. They don't teach anthropology in supply chain programs, but maybe they should. When it comes to effectively operating a global supply chain with partners all of the world, the ability to understand and navigate different cultures can make or break you.
"Culture works hand in hand with trade," explained John Vogt, president of WWBC LLC, an independent consulting firm focused on strategy and global leadership. Vogt moderated a panel discussion where supply chain and operations executives provided tips and tricks for working with supply chain partners from different countries and navigating the inevitable cultural gaffe.
The biggest challenge, agreed the panelists, was effective communications. So much can be lost in translation through written communications and even in phone calls. Darrell Evans, senior vice president and chief supply chain officer for La-Z-Boy, recommends using video conferencing or physical visits for important issues so that body and facial language can be read.
10 steps to automate your warehouse. The path from a nonautomated warehouse to an automated one is not easy, fast, or cheap, says Wes Whalberg, director of supply chain engineering at Best Buy. Companies should consider the benefits, however, when asking the question "Why automate?" These can include labor savings, creating room for potential growth, and space and networking savings, he said. Whalberg detailed the 10-step program his company followed and the lessons learned from automating its distribution network. For companies considering the investment into their supply chain capabilities, consider following these steps:
Define "the burning platform"—What is the problem you are going to solve for the company?
Build a coalition—Recruit a broad set of executives who all share the same problem and are willing to help with the transformation.
Get outside help—Acquire funding for a consultant.
Look for a solution—The consultant will send out a request for proposal (RFP) to integrators. Select an integrator;
Acquire funding—Make sure to include facility readiness costs (such as power and physical changes to the building), IT investments, additional consulting support, and contingency plans into your funding request.
Document initial design and specifications—Make any needed changes to the original RFP and create the initial design.
Make final engineering changes—Lock down the layout of your system and submit building permit plans.
Begin construction—Make sure to consider how the general contractor and systems integrator will work together.
Go live—Expect to find unforeseen issues and software defects in your first initial runs.
Review how things are running—Give your company about a year to identify and take advantage of second-order benefits and mitigate second-order impacts.
New CSCMP board members begin their terms
CSCMP EDGE also marked the start of the 2019-2020 term for the association's board of directors. The following members officially took office at CSCMP's annual meeting, which was held during the conference:
Board of Directors Chair: Michelle Meyer, SCPro client executive of supply chain, at Gartner
Immediate Past Chair: Mark S. Baxa, president and chief executive officer, at FerniaCreek LLC
Board Chair-Elect: Brian Gibson, Wilson Family Professor of Supply Chain Management, Auburn University
Board Vice Chair: Lee Beard, senior director of global transportation, Nike
Secretary/Treasurer: Paul R. Brown, IBP business process owner, Americas, at Akzo Nobel N.V.
The CSCMP Board of Directors is responsible for voting on the mission, vision, and goals of CSCMP on an annual basis and helping the organization understand the needs and wants of its members.
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.”
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."
Even as the e-commerce sector overall continues expanding toward a forecasted 41% of all retail sales by 2027, many small to medium e-commerce companies are struggling to find the investment funding they need to increase sales, according to a sector survey from online capital platform Stenn.
Global geopolitical instability and increasing inflation are causing e-commerce firms to face a liquidity crisis, which means companies may not be able to access the funds they need to grow, Stenn’s survey of 500 senior e-commerce leaders found. The research was conducted by Opinion Matters between August 29 and September 5.
Survey findings include:
61.8% of leaders who sought growth capital did so to invest in advanced technologies, such as AI and machine learning, to improve their businesses.
When asked which resources they wished they had more access to, 63.8% of respondents pointed to growth capital.
Women indicated a stronger need for business operations training (51.2%) and financial planning resources (48.8%) compared to men (30.8% and 15.4%).
40% of business owners are seeking external financial advice and mentorship at least once a week to help with business decisions.
Almost half (49.6%) of respondents are proactively forecasting their business activity 6-18 months ahead.
“As e-commerce continues to grow rapidly, driven by increasing online consumer demand and technological innovation, it’s important to remember that capital constraints and access to growth financing remain persistent hurdles for many e-commerce business leaders especially at small and medium-sized businesses,” Noel Hillman, Chief Commercial Officer at Stenn, said in a release. “In this competitive landscape, ensuring liquidity and optimizing supply chain processes are critical to sustaining growth and scaling operations.”
With six keynote and more than 100 educational sessions, CSCMP EDGE 2024 offered a wealth of content. Here are highlights from just some of the presentations.
A great American story
Author and entrepreneur Fawn Weaver closed out the first day of the conference by telling the little-known story of Nathan “Nearest” Green, who was born into slavery, freed after the Civil War, and went on to become the first master distiller for the Jack Daniel’s Whiskey brand. Through extensive research and interviews with descendants of the Daniel and Green families, Weaver discovered what she describes as a positive American story.
She told the story in her best-selling book, Love & Whiskey: The Remarkable True Story of Jack Daniel, His Master Distiller Nearest Green, and the Improbable Rise of Uncle Nearest. That story also inspired her to create Uncle Nearest Premium Whiskey.
Weaver discussed the barriers she encountered in bringing the brand to life, her vision for where it’s headed, and her take on the supply chain—which she views as both a necessary cost of doing business and an opportunity.
“[It’s] an opportunity if you can move quickly,” she said, pointing to a recent project in which the company was able to fast-track a new Uncle Nearest product thanks to close collaboration with its supply chain partners.
A two-pronged business transformation
We may be living in a world full of technology, but strategy and focus remain the top priorities when it comes to managing a business and its supply chains. So says Roberto Isaias, executive vice president and chief supply chain officer for toy manufacturing and entertainment company Mattel.
Isaias emphasized the point during his keynote on day two of EDGE 2024. He described how Mattel transformed itself amid surging demand for Barbie-branded items following the success of the Barbie movie.
That transformation, according to Isaias, came on two fronts: commercially and logistically. Today, Mattel is steadily moving beyond the toy aisle with two films and 13 TV series in production as well as 14 films and 35 shows in development. And as for those supply chain gains? The company has saved millions, increased productivity, and improved profit margins—even amid cost increases and inflation.
A framework for chasing excellence
Most of the time when CEOs present at an industry conference, they like to talk about their companies’ success stories. Not J.B. Hunt’s Shelley Simpson. Speaking at EDGE, the trucking company’s president and CEO led with a story about a time that the company lost a major customer.
According to Simpson, the company had a customer of their dedicated contract business in 2001 that was consistently making late shipments with no lead time. “We were working like crazy to try to satisfy them, and lost their business,” Simpson said.
When the team at J.B. Hunt later met with the customer’s chief supply chain officer and related all they had been doing, the customer responded, “You never shared everything you were doing for us.”
Out of that experience, came J.B. Hunt’s Customer Value Delivery framework. The framework consists of five steps: 1) understand customer needs, 2) deliver expectations, 3) measure results, 4) communicate performance, and 5) anticipate new value.
Next year’s CSCMP EDGE conference on October 5–8 in National Harbor, Md., promises to have a similarly deep lineup of keynote presentations. Register early at www.cscmpedge.org.