Although job losses are mounting in many industries, the supply chain discipline has been somewhat insulated from layoffs. But that does not mean you can rest easy. The reality is that no one's job is guaranteed, and it is a good idea to start the search process now so that you will be prepared in case your situation changes.
A good initial step is to send your résumé to the major management recruiters who specialize in the supply chain profession. This is true whether you are already on the outside—someone currently looking for a position—or you are employed but are concerned that you might soon need to find a new job.
Recruiters, who help companies find the right people to fill specific positions, can be an important resource for helping you move up the career ladder. Utilizing recruiters' services gives you a definite advantage in the interviewing process. They will advise you of what the client feels is most important, the salary range of the position, why the position is open, the "personality" of the company, which manager the position reports to, that person's background, and other pertinent information.
In general, there are three types of recruitment services:
Retainer search firms: These firms do not normally specialize in a particular area, but they often handle supply chainrelated positions. The positions they work with generally pay salaries of US $100,000 or more. The employer pays them a portion of their fee up front and the remainder as the search continues. Once a retainer agreement has been signed, the search firm has exclusive rights to recruit for that position.
Contingency staffing firms: These companies are paid by employers when, and only when, they complete their assignment by finding a candidate who accepts the offer and begins the job.
Specialty search firms: These are organizations that specialize in a specific industry, such as retail, chemical, or health care, or in specific professions, such as engineering or supply chain management. They may work on retainer, contingency, or a combination of both, depending on their relationship with their clients and the salary level of the assignment.
Whether a recruiting service works on retainer or contingency should not be important to you. Nor do you have to feel a personal liking for the recruiter or organization you are working with—after all, you will not be working for them. The most important thing from your point of view is that the recruiter handle positions that are in your particular field and that it does so ethically.
Here are some suggestions—based on my years of experience recruiting qualified supply chain professionals—for successfully working with these employment experts.
Personalize your contacts
There is no need to limit the number of recruiters you work with—just be organized and keep the information about them and the jobs they are handling separate. To help you get started, CSCMP has a list of recruiters that specialize in supply chain positions on its web site. I strongly suggest visiting the recruiters' web sites before you contact them to find out as much as you can about them.
Rather than send identical résumés by email to all of the recruiters at the same time, send out just a few résumés each week and make sure to personalize them. If a recruiter is large enough to have someone on staff who specializes in your particular area of supply chain management, send your résumé directly to that person.
If a professional acquaintance or colleague recommends a recruiter to you, be sure to include this person's name, company, title, and your relationship with him or her in your cover letter. A cover letter should be brief, however. Sending a long letter recapping your experience or adding unnecessary information may lead the recruiter to pass over your material. If information is important, it should be in your résumé.
I can assure you that if you are a good candidate for a position a recruiter is working on, you will receive a call quickly. Otherwise, one day normally is enough time to wait before contacting the recruiter to follow up. After you send your résumé, communicate with the recruiter by telephone, unless otherwise requested.
Be at your professional best
It's important to remember that the recruiter's client is the employer, not you. Recruiters see job candidates as their assets. When they talk to you, their concern is not only that you will be successful in a position but also whether you fit the profile their clients want.
There are, however, things you can do to make yourself more attractive to recruiters. When you first speak to them, you should be at your best. First impressions are very important, and the impression you make in a few moments on the telephone or in person has a tendency to remain in a recruiter's mind. That's why it's important to prepare in advance for a recruiter's call. If you are not prepared, arrange a time that is convenient for both of you. Have the information you will need—including your résumé—at your fingertips.
There is some basic information that recruiters need to know, such as your complete compensation package and your location preferences. And if you have already sent your résumé directly to the hiring company or are presently interviewing for the position the recruiter is handling, you must say so. If that is the case, the recruiter normally cannot work with you on that position.
Recruiters also need to get a feel for you as a person. I believe that the more recruiters know about candidates, the better they are able to determine whether those candidates fit the positions they are working on. Moreover, recruiters may make an extra effort for those candidates they like and respect. Although they can only place you if they have a position for which you are truly qualified, they may tell you about an opening they know of but are not working on, or they may offer you some ideas that can help your search. Additionally, they may represent positions that you are not aware of but which might be suitable for you.
Remember that recruiters are looking for the best candidate they can find for their clients. You should act professionally, convey your energy and experience, and be able to speak about your achievements, what you have contributed, and why you made the decisions you did. Information should be shared on a need-to-know basis. Blaming others, complaining about the past, discussing your personal problems, and other unprofessional behavior will cause you to lose your edge in a recruiter's eyes. In other words, you need to treat recruiters the same way you would treat the hiring manager at a company that is interviewing you for a position.
After you go on an interview, report back to the recruiter as soon as possible. He or she can debrief you and clear up any questions or misconceptions you and the client may have.
Nurture the relationship
When is the best time to develop a relationship with a recruiter? The answer is simple: The first time a recruiter calls you, especially if that recruiter specializes in your field. It may prove very valuable for you to nurture an ongoing relationship. Some people think they don't have time to speak to a recruiter, but that is a mistake. There may come a time when you will need their help. Being positive and helpful may pay dividends for your career—whether you're currently looking for a new position or not.
Furthermore, there are other reasons for speaking to recruiters besides searching for a position. They can keep you abreast of changes in your field, tell you about typical salary ranges, and help you with questions regarding your career decisions or finding an employee for your own staff. Yes, their clients are the hiring companies, but recruiters also care about your career development. Remember: If you succeed, they succeed, too.
CSCMP member Roger J. Zetter, CPC will write the Career Ladder column throughout 2009. He is Chief Executive Officer of Optimum Supply Chain Recruiters, LLC, a recruiting firm that specializes in supply chain management positions. Before becoming a recruiter, he held positions in transportation and logistics for several companies. Zetter, who was featured in our Q3/2008 Dialogue interview, has been certified by the National Association of Personnel Consultants.
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."