Creating and implementing a sound supply chain strategy is a complex challenge; the need to create a sound global supply chain strategy only magnifies that challenge. Georgia Tech designed its "Global Supply Chain Strategy" executive education course for supply chain professionals who are preparing themselves and their companies for broader and more challenging responsibilities in global supply chain management. Participants will learn how to manage and understand key global supply chain processes as well as the risk factors that affect them.
They will also develop a deeper understanding of how to manage relationships with global supply chain partners, including logistics service providers. CSCMP is a co-sponsor of this event and members receive a discount.
Program: Global Supply Chain Strategy Sponsors: Georgia Institute of Technology Supply Chain & Logistics Institute and CSCMP Location: Atlanta, Georgia, USA Dates: June 8-10, 2010 Info:www.scl.gatech.edu
The theory behind your practice
Many supply chain and logistics managers have learned about their field of expertise from doing their jobs day in and day out, not from sitting in a classroom. Knowing the theory and principles of the logistics discipline, however, can sometimes help you take your supply chain and logistics performance to the next level. Michigan State's "Supply Chain Logistics Management" course is geared for experienced executives who have not had the benefit of formal logistics training. Attendees will learn to identify and understand the logistics and supply chain trade-offs associated with global operations. CSCMP is a co-sponsor of this program.
Program: Supply Chain Logistics Management Sponsors: Michigan State University and CSCMP Location: East Lansing, Michigan, USA Dates: May 9-14, 2010 Info:www.bus.msu.edu/execed/programs/openEnrollment.cfm
Real-life supply chain stories
You can hear about real-life supply chain practices at the three-day certificate program offered by Rutgers Business School's Center for Supply Chain Management and co-sponsored by CSCMP. Many of the presenters are senior corporate supply chain executives with extensive practical experience.
They and other lecturers will cover the major aspects of supply chain management, including strategy, sourcing and procurement, logistics, operations, and organizational alignment. Participants will learn the principles of supply chain management strategy and how to link supply chain management to their overall business strategy. They also will study how to track supply chain performance and best manage both internal and external relationships.
Program: Strategies for Designing and Leading Your End-to-End Supply Chain Sponsors: Rutgers Business School and CSCMP Location: Piscataway, New Jersey, USA Dates: June 16-18, 2010 Info:https://scmcenter.rutgers.edu/cp
CSCMP, ICOR offer online courses
CSCMP has partnered with The International Consortium for Organizational Resilience (ICOR) to create one of the world's first e-learning courses on supply chain risk management. "Supply Chain Risk Mitigation" is an introductory course that focuses on ways to create risk mitigation strategies that add resiliency without increasing operating costs. The course runs over a two-week timeframe. Participants can review the course instructional material when it is convenient for them and then participate in an online discussion.
This is just one of several online classes that CSCMP has organized. CSCMP has also designed a course on RFID essentials and has partnered with Syracuse University's Whitman School of Management to create one on Six Sigma methodology. More information about the risk management class and other online education opportunities can be found at cscmp.org.
"Applying Lean Principles Across the Supply Chain" introduces a systemic approach for applying lean thinking to supply chain challenges. This executive education course from Penn State University (co-sponsored by CSCMP) offers practical, hands-on insights from industry leaders such as Kraft Foods and Dell. Participants will learn lean principles and tools that can help them achieve greater supply chain speed and efficiency. They will also discover how to extend these practices beyond their enterprises to suppliers and customers.
Program: Applying Lean Principles Across the Supply Chain Sponsors: Pennsylvania State University and CSCMP Location: University Park, Pennsylvania, USA Dates: June 7-11, 2010 and November 29-December 3, 2010 Info:www.smeal.psu.edu/psep/lsc.html
A better way to outsource
Instructors at the University of Tennessee promise that their "Vested Outsourcing" course will fundamentally change your approach to procuring outsourced services such as third-party logistics, supply chain management, information technology support, and facilities management.
Today, most companies approach their outsourcing relationship from a transactional perspective; they purchase activities or transactions from their suppliers. But the concept taught in this course—"performance-based outsourcing"— looks at how to create an outsourcing agreement that focuses on results instead of on activities. Attendees will leave the class, which is co-sponsored by CSCMP, well-grounded in a five-step process and best practices for implementing a performance-based outsourcing agreement.
Program: Vested Outsourcing Sponsors: University of Tennessee Center for Executive Education and CSCMP Location: Knoxville, Tennessee, USA Dates: June 8-10, 2010 and October 26-28, 2010 Info:https://thecenter.utk.edu
Learn best practices from the best
Participants at CSCMP's new Process Standards Workshop will leave the course armed with more than 300 supply chain best practices culled from leading companies such as Coca-Cola, Cummins, International Paper, and Welch's. Better yet, they will know how to benchmark their current performance against these industry leaders. Participants will learn how to evaluate the risks and rewards of potential supply chain initiatives and how to identify improvements that will increase financial performance.
Instructors will cover how to assess a process, decide which parts need to be improved, develop a roadmap for improvement, create an implementation plan, and build a business case for the initiative. As part of the registration fee, attendees receive the newly published second edition of CSCMP's Supply Chain Management Process Standards book.
Program: Process Standards Workshop Sponsor: CSCMP Location: Lombard (Chicago), Illinois, USA Dates: May 13-14, 2010 and November 11-12, 2010 Info:https://cscmp.org
Bridge the gap between action and strategy
When CSCMP created its Strategic Supply Chain Management Workshop, the organization wanted to help supply chain managers bridge the gap between managing the functional elements of their supply chains and creating and implementing an optimal supply chain strategy. The course's lectures, presentations, and exercises focus on what makes a successful strategy: understanding each supply chain partner's needs, strengths, and weaknesses as well as how these competencies can best be aligned.
This course is designed for general managers and supply chain directors, particularly those who have multiple functional responsibilities.
Participants will work in groups to examine case
studies and exercises, exploring the breadth of the supply chain and its relevance to overall business. They will hear specific, real-world examples from recognized experts in the field. The sessions are interactive, and instructors are prepared to answer questions about specific industries and/or geographic regions.
Program: Strategic Supply Chain Management Sponsor: CSCMP Location: Lombard (Chicago), Illinois, USA Dates: April 12-13, 2010 Info:https://cscmp.org/events/strategic-scm
Creating a coherent supply chain picture
Having a coherent vision of what effective supply chain management entails can help your company achieve its strategic goals. The Ohio State University, working in partnership with Cranfield University, has created an executive education course on supply chain management that provides a framework that can help guide your efforts. This framework, created by The Global Supply Chain Forum, consists of eight essential supply chain processes: customer relationship management, supplier relationship management, customer service management, demand management, order management, manufacturing flow management, product development and commercialization, and returns management. This course is co-sponsored by CSCMP.
Program: Supply Chain Management: Processes, Partnerships, Performance Sponsors: The Ohio State University, Cranfield University, and CSCMP Locations and Dates: Ponte Vedra Beach, Florida, USA: April 19-23, 2010
Cranfield, England, U.K.: May 10-14, 2010 Info:www.fisher.osu.edu/centers/scm/executive-education
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.
“Unrelenting labor shortages and wage inflation, accompanied by increasing consumer demand, are driving rapid market adoption of autonomous technologies in manufacturing, warehousing, and logistics,” Seegrid CEO and President Joe Pajer said in a release. “This is particularly true in the area of palletized material flows; areas that are addressed by Seegrid’s autonomous tow tractors and lift trucks. This segment of the market is just now ‘coming into its own,’ and Seegrid is a clear leader.”
According to Pajer, Seegrid’s strength in the sector is due to several new technologies it has released in the past six months. They include: Sliding Scale Autonomy, which provides both flexibility and predictability in autonomous navigation and manipulation; Enhanced Pallet and Payload Detection, which enables reliable recognition and manipulation of a broad range of payloads; and the planned launch of its CR1 autonomous lift truck model later this year.
Seegrid’s CR1 unit offers a 15-foot lift height, 4,000-pound load capacity, and a top speed of 5 mph. In comparison, its existing autonomous lift truck model, the RS1, supports six-foot lift height, 3,500 pound capacity, and the same top speed.
The “series D” investment round was funded by existing lead investors Giant Eagle Incorporated and G2 Venture Partners, as well as smaller investments from other existing shareholders.
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.”