If you have used CSCMP?s Supply Chain Management Process Standards handbook in the past, then you know that it can be a valuable tool for improving core processes and overall performance.
To make that tool even better, CSCMP has revamped the Standards in a second edition that merges its structure with the APQC Process Classification Framework (PCF). APQC is a nonprofit that helps organizations benchmark and improve their processes and performance. Its Process Classification Framework is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint.
The first edition of CSCMP?s Standards provided a comprehensive reference guide for logistics and supply chain processes. By revising the standards to work in conjunction with the PCF, the second edition enables companies to perform even better supply chain benchmarking.
The revised standards address the growing need for supply chain professionals to determine which processes and attributes are essential to their industries and competitive strategies. The handbook helps supply chain professionals focus their energies on achieving best practices in these processes while maintaining minimum standards in other areas.
It?s important to identify potential gaps across a broad spectrum of your supply chain processes as well as to recognize where your strengths and weaknesses lie. The Standards handbook allows you to focus attention on those areas where improvement efforts drive the most benefit. It also helps you share and compare (with discretion) these results with other organizations in your supply chain to improve overall effectiveness.
The second edition of CSCMP?s Supply Chain Management Process Standards, written by the consulting firm Supply Chain Visions, costs US $99.95 for members and US $139.95 for nonmembers. It can be purchased in the ?Bookstore? section of CSCMP?s website.
New! Updated Process Standards Workshop
In tandem with publishing a revised version of its Supply Chain Management Process Standards handbook, CSCMP is launching a two-day workshop: ?The New Process Standards: Assess. Implement. Improve.? The next workshop is scheduled for November 16-17, 2009, in Lombard, Illinois, USA.
Hot off the press: The Handbook of Supply Chain Costing
Supply chain management offers great potential to increase performance and reduce costs. But despite making major strides in integrating their supply chains, executives have achieved just a fraction of the potential savings available. Supply chain costing can provide the next big breakthrough that will help companies achieve a higher level of value creation.
CSCMP?s new book, The Handbook of Supply Chain Costing, was developed to assist supply chain executives in expanding their visibility and management of cost information. Written by Terrance L. Pohlen and Thomas P. Klammer of the University of North Texas and Gary Cokins of SAS Institute, the book says that to achieve the full potential of supply chain management, executives require a much broader view of costs than is available through their existing cost management systems. They need to improve their internal cost information and extend their ?line of sight? to include their trading partners? costs—both upstream and downstream.
This argument is supported by research on more than 20 companies representing a wide range of industries. Recognized as leaders in supply chain management, cost management and control, and collaboration, all of these firms had a clear vision of what they sought to achieve, yet none had fully completed the process. The book uses their journeys as a roadmap for others.
Drawing from this research, the authors provide a foundation for conducting supply chain costing and address issues common to all supply chains and costing efforts. The book then helps supply chain professionals tailor the process to their own circumstances and costing needs.
The Handbook of Supply Chain Costing can be purchased in CSCMP?s Bookstore for US $79.95 for members and US $109.95 for nonmembers.
CSCMP webinars offer affordable education
When times are tough, travel budgets often suffer. But that?s no reason to put your professional education on hold. CSCMP is continuing to develop a full slate of webinars that address pressing industry problems and trends, which you can attend for a fraction of the cost of most executive education courses or conferences.
The sessions may be virtual, but attendees won?t completely lose the give-and-take that makes in-person events so valuable. Because the webinars are broadcast live, you?ll have the opportunity to pose questions and offer comments just as you would during a traditional seminar.
Each of these virtual presentations has met CSCMP?s rigorous educational standards, so quality is guaranteed. For the next scheduled webinar, Bill Hardgrave of the University of Arkansas will examine how to deploy RFID to solve business problems and receive a payback on that investment. The virtual presentation will occur on November 18, 2009, at 11:00 am CST. Click here for more information.
You?ve read their words, now hear them speak ...
You now have the opportunity to hear some of the authors of Supply Chain Quarterly articles discuss their thought-leading research and ideas. On October 8, CSCMP?s Supply Chain Quarterly will post video interviews with the authors of some of its best-read articles. Filmed on location at the CSCMP Annual Global Conference in Chicago, the videos will feature presenters from the ?Highlights of Supply Chain Quarterly? track:
Chuck Taylor of Awake! Consulting on how companies should prepare for the next round of oil price hikes;
Stephen Cain of Groenewout Consultants & Engineers on multilayered distribution in Europe;
Ted Schaefer of Profit Point on how to manage the twin goals of profitability and sustainability;
Douglas Lambert of The Ohio State University on how you can determine which of your customers are most profitable;
Brad Sampson of XCD Performance Consulting on when in-sourcing is the right decision for a company; and
Joseph Martha of Booz Allen Hamilton on how to determine a supply chain?s carbon footprint.
To view the video interviews, visit our Video section starting on October 8.
Economic activity in the logistics industry expanded in August, though growth slowed slightly from July, according to the most recent Logistics Manager’s Index report (LMI), released this week.
The August LMI registered 56.4, down from July’s reading of 56.6 but consistent with readings over the past four months. The August reading represents nine straight months of growth across the logistics industry.
The LMI is a monthly gauge of economic activity across warehousing, transportation, and logistics markets. An LMI above 50 indicates expansion, and a reading below 50 indicates contraction.
Inventory levels saw a marked change in August, increasing more than six points compared to July and breaking a three-month streak of contraction. The LMI researchers said this suggests that after running inventories down, companies are now building them back up in anticipation of fourth-quarter demand. It also represents a return to more typical growth patterns following the accelerated demand for logistics services during the Covid-19 pandemic and the lows of the recent freight recession.
“This suggests a return to traditional patterns of seasonality that we have not seen since pre-COVID,” the researchers wrote in the monthly LMI report, published Tuesday, adding that the buildup is somewhat tempered by increases in warehousing capacity and transportation capacity.
The LMI report is based on 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).
With the economy slowing but still growing, and inflation down as the Federal Reserve prepares to lower interest rates, the United States appears to have dodged a recession, according to the National Retail Federation (NRF).
“The U.S. economy is clearly not in a recession nor is it likely to head into a recession in the home stretch of 2024,” NRF Chief Economist Jack Kleinhenz said in a release. “Instead, it appears that the economy is on the cusp of nailing a long-awaited soft landing with a simultaneous cooling of growth and inflation.”
Despite an “eventful August” with initial reports of rising unemployment and a slowdown in manufacturing, more recent data has “calmed fears of a deteriorating U.S. economy,” Kleinhenz said. “Concerns are now focused on the direction of the labor market and the possibility of a job market slowdown, but a recession is far less likely.”
That analysis is based on data in the NRF’s Monthly Economic Review, which said annualized gross domestic product growth for the second quarter has been revised upward to 3% from the original report of 2.8%. And consumer spending, the largest component of GDP, was revised up to 2.9% growth for the quarter from 2.3%.
Compared to its recent high point of 9.1% in July of 2022, inflation is nearly back to normal. Year-over-year growth in the Personal Consumption Expenditures Price Index – the Fed’s preferred measure of inflation – was at 2.5% in July, unchanged from June and only half a percentage point above the Fed’s target of 2%.
The labor market “is not terribly weak” but “is showing signs of tottering,” Kleinhenz said. Only 114,000 jobs were added in July, lower than expected, and the unemployment rate rose to 4.3% from 4.1% in June. Despite the increase, the unemployment rate is still within the normal range, Kleinhenz said.
“Now the guessing game begins on the magnitude and frequency of rate cuts and how far the federal funds rate will be reduced,” Kleinhenz said. “While lowering interest rates would be good news, it takes time for rate reductions to work their way through the various credit channels and the economy as a whole. Consequently, a reduction is not expected to provide an immediate uplift to the economy but would stabilize current conditions.”
Going forward, Kleinhenz said lower rates should benefit households under pressure from loans used to meet daily needs. Lower rates will also make it more affordable to borrow through mortgages, home improvement loans, car loans, and credit cards, encouraging spending and increasing demand for goods and services. Small businesses would also benefit, since lower intertest rates could lower their financing costs on existing loans or allow them to take out new loans to invest in equipment and plants or to hire more workers.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”