As a college student, Craig Weiss was attracted to logistics because of the problem-solving opportunities it offered. By that measure, the profession has clearly delivered on its promise. In the 20 years since Weiss entered the field, the logistics world has been rocked by a technology revolution, regulatory upheaval, and an epic trucking capacity crunch, to name just a few of the challenges that have emerged.
Weiss has had a front-row view of the turmoil. For the past 16 years, he has held supply chain leadership positions with the Chicago-based packaged-foods giant Conagra Brands, whose portfolio includes such household names as Hunt's, Healthy Choice, Duncan Hines, Birds Eye, and Bertolli. Today, he is the company's senior vice president, supply chain, responsible for the full gamut of supply chain planning functions as well as transportation and warehousing.
Prior to joining Conagra Brands, Weiss held managerial roles at third-party logistics service providers ODW Logistics and Total Logistic Control (now part of Ryder), and served as a consultant at Ernst & Young. He spoke recently with CSCMP's Supply Chain Quarterly Group Editorial Director Mitch Mac Donald about the shifting tech landscape, the supply chain of the future, and what keeps him up at night.
NAME: Craig Weiss TITLE: Senior Vice President, Supply Chain,for Conagra Brands EDUCATION: Bachelor's degree in business administration, with majors in supply chain and marketing, and a minor in finance from Central Michigan University PREVIOUS EXPERIENCE: held several positions at Conagra Brands ranging from director of logistics to vice president of supply chain integration, where he led the supply chain integration of the company's largest acquisition of Ralcorp Foods Private Brands business; director of operations (logistics) at ODW Logistics; general manager at Total Logistic Control; and supply chain consultant at Ernst & Young. LEADERSHIP: Leads the program managementoffice, customer supply chain, and merger and acquisition efforts at Conagra; member of the Council of Supply Chain Management Professionals
Let's start with your career migration. How did you end up in the supply chain profession?
Actually, I got a degree in logistics in college. A professor of mine [at Central Michigan University], Dr. Robert Cook, convinced me that logistics was a great field to go into, and that if you like a fast-paced environment with opportunities to resolve operational challenges and work with people, logistics would be a great career choice. That is ultimately what helped guide me into a career in logistics.
Could you tell us a little about the operations you oversee?
My current role at Conagra is leading the back end of our supply chain, meaning I oversee our supply chain planning functions, which includes demand planning as well as supply and inventory replenishment planning. I also lead Conagra's logistics team, which is transportation and warehousing, and our customer supply chain team, which is our strategic interface with our customers. I'm involved in several other initiatives as well, including our corporate enterprisewide productivity program and our distribution center (DC) network optimization program.
What are some of the biggest challenges you face in today's market? That is, what keeps you up at night?
There are a couple of things that keep me up at night. Number one is the speed at which the supply chain and our customers' expectations are evolving and the challenges of staying relevant and competing in that fast-changing world.
Another, more tactical, challenge is how to enhance the efficiency of our freight-handling operations. The trucking capacity challenges of the past few years have really forced us to look at our distribution centers and examine our traditional notions about how long it should take to turn a truck around. We're now looking at ways to speed up the loading/unloading process and move trucks through our yards faster—including the possible use of some sort of advance reservation system.
We've set some pretty aggressive goals for improving the speed at which trucks can get in and out of our facilities.
Turning to your distribution and fulfillment centers, are they internally staffed, outsourced to a third-party logistics service provider (3PL), or a combination of the two?
It's a combination. We operate a number of our own distribution centers, and we also partner with some of the industry's leading 3PLs.
One of the questions that often come up with 3PLs is how to maintain oversight of their operations and ensure that you're working toward the same objectives. How do you handle that?
I think it starts with having good strategic alignment of the two organizations, in finding ways to ensure that what's good for Conagra is also good for our third parties and vice versa. We want to be seen as a strategic customer with our third parties, so we go out of our way to ensure that they understand not only what we're doing in distribution but also what we're doing as a company.
We regularly bring our third parties in to discuss our growth plans, our customers' expectations, and our cost pressures. We include them as part of our staff meetings and truly operate as though they were an extension of our organization.
Turning to your own DCs, are you having difficulty finding the labor and talent you need, and if so, how are you addressing that?
It can be challenging to find good, qualified people, especially for the more technical roles in some of our rural locations. We are constantly in search of the next great way to attract, retain, and develop talented people.
We have found that our teams are most effective when we create the right work environment for them and provide the right tools to succeed. This includes giving teams the freedom to own their work and results by promoting independent decision makingand eliminating bureaucracy, as well as ensuring that they are both accountable for their results and recognized for their contributions.
We also put a lot of emphasis on modernizing our processes, including investing in the right technology to help bring it all together.
You provided a nice segue into another topic I wanted to touch on with you, which is technology. What are some of the technologies you're using to manage your DC and fulfillment operations?
I think we have a great track record at Conagra of leveraging technology to stay competitive in today's world. We use a suite of best-of-breed technology solutions to manage our supply chain operations. And we are constantly looking for new opportunities we can take advantage of, whether it's cloud computing, artificial intelligence, or predictive analytics solutions.
Are there some technologies on the horizon that you think hold a lot of promise for your operations?
Yes, one example would be technologies like sensors that have the potential to provide true end-to-end visibility across the supply chain—visibility that in the past was sometimes hard to get.
Another area is automation—distribution center automation not just for e-commerce operations but also for facilities that are still shipping a combination of traditional truckloads, full pallet loads, and e-commerce orders. We are looking to take advantage of that both internally and with our third parties.
Let's talk about the future. If you were to come to work tomorrow and it was Q4 2029 rather than 2019, what would look different to you?
The future of how food will be purchased and delivered will be very different, and as a result, I think that the forward-thinking nature of our operations will be very different. We will be focused on more predictive analytics of events that will occur months in the future—largely because we'll have access to cross-functional operations data that will enable us to foresee potential constraints and obstacles, and then respond to them.
The folks doing that will work across a broader swath of the supply chain. As the lines between transportation planning, inventory planning, and warehouse planning begin to blur, I think we will have fewer people in functional roles and more in cross-functional roles who will have a better understanding of the implications of their decisions.
What should supply chain organizations be doing now to prepare for the future you just described?
Get the right people, with the right skills, and with the right structure, and then make the right investments in processes and technology to meet the goals of the company and its customers. Structurally, work to merge supply chain disciplines with analytic disciplines. Recruit people who not only have good operations skills and want to work with the products but also bring that analytical skill set. When you bring the operational and the analytic together, I think that is where you have your future supply chain.
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
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."