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.
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.”